Question

you want to borrow $7600 to purchase a 2013 Camry what will be your monthly payment if the loan is for four years at 6.45% interest

Answer 1

PVOrdinary Annuity = C*[(1-(1+i/(f*100))^(-n*f))/(i/(f*100))]

C = Cash flow per period

i = interest rate

n = number of payments I f = frequency of payment

7600= Cash Flow*((1-(1+ 6.45/1200)^(-4*12))/(6.45/1200))

Cash Flow = 180.06

Using Calculator: press buttons "2ND"+"FV" then assign

PV =-7600

I/Y =6.45/12

N =4*12

FV = 0

CPT PMT

Using Excel

=PMT(rate,nper,pv,fv,type)

=PMT(6.45/(12*100),12*4,,7600,)