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Question 1
1 pts
You borrow money to purchase a car. You secure a 5 year loan for $15,000 with an annual percentage
rate of 5%. How much will your monthly payments be?

Respuesta :

semsee45

Answer:

$283.07

Step-by-step explanation:

Monthly Payment Formula

[tex]\sf PMT=\dfrac{Pi(1+i)^n}{(1+i)^n-1}[/tex]

where:

  • PMT = monthly payment
  • P = loan amount
  • i = monthly interest rate (in decimal form)
  • n = term of the loan (in months)

Given:

  • P = 15000
  • i = 5% / 12 = 0.05 / 12
  • n = 5 years = 60 months

Substitute the given values into the formula and solve for PMT:

[tex]\implies \sf PMT=\dfrac{15000\left(\frac{0.05}{12}\right)\left(1+\frac{0.05}{12}\right)^{60}}{\left(1+\frac{0.05}{12}\right)^{60}-1}[/tex]

[tex]\implies \sf PMT=283.0685047...[/tex]

Therefore, the monthly payments will be $283.07.

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