Homework question help needed

Accounting
Tutor: None Selected Time limit: 1 Day

The Shelby cobra retails for $47, 684 (All Taxes Included). What are the monthly loan payments if you can make a down payment of $4001, the term is 5 years and the APR is 6.5%. (Car loan payments are made at the end of each month) What is the amount of the monthly payment?

Jun 24th, 2015

Thank you for the opportunity to help you with your question!

Amount to be paid in 5 years = 47684 - 4001 = 43683

Payment is monthly. Hence, i = 6.51200

If P is monthly payment, we will have 

43683 = P[1-(1+i)^-60]/i

Putting value of i = 6.5/1200 and solving for P, we get P = 854.71

Hence, monthly payment = $854.71 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 24th, 2015

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Jun 24th, 2015
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Jun 24th, 2015
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