Mathematics
jloopa
2016-05-01 09:47:27
A $28,000 car loan is used to purchase a new car. The loan is for 6 years and has a 5.75% APR. Use the amortization formula to determine the amount of the monthly payments.
ANSWERS
Ricco7
2016-05-01 16:25:00

[latex]f qquad qquad extit{Amortized Loan Value} \\ pymt=Pleft[ cfrac{frac{r}{n}}{1-left( 1+ frac{r}{n} ight)^{-nt}} ight][/latex] [latex]f qquad egin{cases} P= egin{array}{llll} extit{original amount}\ end{array} o & egin{array}{llll} 28,000 end{array}\ pymt= extit{periodic payments}\ r=rate o 5.75\% o frac{5.75}{100} o &0.0575\ n= egin{array}{llll} extit{times it compounds per year}\ extit{payments are monthly, thus} end{array} o &12\ t=years o &6 end{cases} \\\ pymt=28000left[ cfrac{frac{0.0575}{12}}{1-left( 1+ frac{0.0575}{12} ight)^{-12cdot 6}} ight][/latex]

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