Question

A sailboat costs $18.453. You pay 15% down and amortize the rest with equal monthly payments over a 12-year period. If you must pay 7.2% compounded monthly what is your monthly payment? How much interest will you pay? Monthly payments: $ (Round to two decimal places.) Interest: $(Round to two decimal places.) ime

Answer 1

Islo down payment is made thus, 85% of the cost is amortised and would be present value lîn context of problem, X Present value, pv 85% of cost 85 18,453 1000 $ 15685.055 Rate of interext per period, koogi- » i = 0.6% = 0.006. 2 no. of pened 8 M =128125 144r. using preseat value formula - pr - PMT/1 (14) * 72 th 7.2 % 12 + + 15885.05 = PMT/1-(1+ 0.0061-1984 0.006 → PM T = 15685205x0.006 I-4170.000) PMT - $ 162.98

interest - total amount of payments loan amount or credit 144x162.98-156.85.05 $ 7784:12 monthly paymentf != $152.98 interest $ 7784:12 || Ons