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28 May, 02:55

Suppose that you decide to purchase a new car. You go to a credit union to ge preapproved for your loan. The credit union offers you an annual interest rate of 3.25% for 3 years. The purchase price of the car you select is $28,450, including taxes, and you make a 20% down payment. What is your monthly payment?

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Answers (2)
  1. 28 May, 03:49
    0
    Answer: $664/month

    Step-by-step explanation:

    Annual interest rate = 3.25% = 0.0325

    Monthly interest rate = 0.0027083

    Period = 3years = 36 months

    Price of car = $28,450

    Down payment = 20%

    Down payment = 0.2 * $28,450

    Down payment = $5,690

    Loan amount = $ (28,450 - 5690) = $22,760

    Using the car loan calculator:

    The monthly payment on the car is $664

    OR

    Monthly payment = (monthly interest rate * loan amount) : 1 - (1 + monthly interest rate) ^-period

    0.0027083 * $22760 / 1 - (1.0027083) ^-36

    = $61.6417 / 0.09277

    = $664.46
  2. 28 May, 04:51
    0
    Answer: $664.480

    Step-by-step explanation:

    Given dа ta:

    r = 3.25%

    T = 3years = 36months

    Purchase price of car = $28,450

    Down payment made = 20%

    Therefore;

    1. Down payment = 20% of car purchase price

    = 0.2 * $28,450

    = $5,690

    2. Remaining cost = original cot - down payment

    = $28,450 - $5690

    = $22,760

    Monthly payment

    Where i = r/t

    n = 36

    r = 0.0325/12 = 0.002708

    M = 0.002708 * $22760 / 1 - (1 + 0.002708) ^-36

    M = $61.642 / 0.09277

    M = $664.480
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