The amount to be financed on a new car is $9,500. The terms are 11% for 4 years. What is the monthly payment? (round to the nearest cent.)
This is the formula to calculate:
E = P×r×(1 + r)n/((1 + r)n - 1)
E is monthly payment
where P is Principle Loan Amount = $9,500
r is rate of interest calculated in monthly basis it should be = Rate of Annual interest/12/100 = 11/12/100 = 0.00917
n = no. of months = 4*12 = 48 monthsSo E = 9500×11×(1 + 11)48/((1 + 11)48 - 1)The value of E turns out to be $ 245.53
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