You are financing a new car with a 3 year loan at 5% annual interest, compounded |
monthly. The amount you are borrowing is $16,000. What are your monthly payments? |
Borrowed amount (P) = $16000
Annual Interest = 5% = 0.05
Since, it is monthly compounded, monthly interest = Annual interest/12
Monthly Interest (R) = 0.05/ 12 = 0.00417
No.of payments = 3 years * 12 months
Therefore, no.of monthly payments (N) = 36
Calculation of EMI:
Therefore, the monthly payment is $479.563
You are financing a new car with a 3 year loan at 5% annual interest, compounded...
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