You want to borrow $34,000 to buy a new car. Your interest rate is 4.5% over...

Question

Question

Answer 1

Answer #1

Borrowing = $ 34000, Interest Rate = 4.5 % and Tenure = 7 years or (7 x 12) = 84 months

Applicable Monthly Rate = 4.5/12 = 0.375 %

Let the monthly repayments be $ N

Therefore, 34000 = N x (1/0.00375) x [1-{1/(1.00375)^(84)}]

34000 = N x 71.9416

N = 34000 / 71.9416 = $ 472.605

Answer 2

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