Andrea is buying a car for $21,450. She will finance $16,450 of it with a 5-year loan at 2.9% APR. What will her monthly auto payment be?

To solve the problem, use the formula:

A = P (i (1 + i) ^n) / ((1 + i) ^n - 1)

where A is the yearly payment

P is the principal amount of money

i is the annual percent rate or APR

n is the number of year

A = (16,450) (0.029 (1 + 0.029) ^5)) / (1 + 0.029) ^5 - 1)

A = 3581.68

and her payment per month is

m = 3581.68 / 12

m = $ 298.47 per month