You have decided to buy a new BMW 3281C convertible which fully loaded the dealer will...

Question

Question

Answer 1

Answer #1

Solution:-

The formula for calculating EMI is as follows:

EMI = [P x I x (1+I)^N]/[(1+I)^N-1]

P =loan amount or Principal= $40,000

I = Interest per month= 6.5%/12

N = the number of installments= 5 years*12= 60 installments

EMI= [40,000*(6.5%/12)*(1+(6.5%/12))^60] / [(1+(6.5%/12))^60 -1]

EMI= (216.67*1.382817)/0.382817

EMI= $782.65

Thus, the correct option is the fourth option

Answer 2

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