Suppose Capital One is advertising a 60-month, 5.05% APR motorcycle loan. If you need to borrow...

Question

Question

Suppose Capital One is advertising a 60-month, 5.05% APR motorcycle loan. If you need to borrow $7,600 to purchase your dream

Answer 1

Answer #1

Information provided:

Present value= $7,600

Time= 60 months

Interest rate= 5.05%/12= 0.4208% per month

The monthly payment is calculated by entering the below in a financial calculator:

PV= -7,600

N= 60

I/Y= 0.4208

Press the CPT key and PMT to compute the monthly payment.

The value obtained is 143.60.

Therefore, the monthly payment is $143.60.

In case of any query, kindly comment on the solution.

Answer 2

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