Question

4. Suppose Capital One is advertising a 60​-month, 5.83% APR motorcycle loan. If you need to borrow $7,200 to purchase your dream​ Harley-Davidson, what will be your monthly​ payment?​ (Note: Be careful not to round any intermediate steps less than six decimal​ places.)

Answer 1

Ans $ 138.63

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods
P =	r (PV)
	1 - (1 + r )-n
P =	(5.83%/12)*7200
	1 - (1 / (1 + 5.83%/12)^60))
P =	34.98
	0.252330455
P =	138.63