Minh wants to bug a car costing 9950.00. She can put 1000.00 down amf finance the rest at 10.9% APR, making monthly payments for three years. How much will she pay in finance charges

Total cost of the loan is $10,533

Find the monthly payment with interest and multiply by total number of months.

Monthly payment:

Use the formula {/displaystyle A=P * (r (1+r) ^{n}) / ((1+r) ^{n}-1) }.

A = the monthly payment.

P = the principal

r = the interest rate per month, which equals the annual interest rate divided by 12

n = the total number of months

p=9950-1000 down payment = $8950

r = 10.9/12 =.9083

n = 3years * 12 months per year = 36

A = 292.58

292.58 per month * 36 months = 10,533