SOLUTION: Sam plans to buy a car for R125 000. He pays a 15% deposit and manages to secure a bank loan for the outstanding amount. The bank charges 12,5% per annum, compounded monthly. Dete

Question 1114982: Sam plans to buy a car for R125 000. He pays a 15% deposit and manages to secure a bank loan for the
outstanding amount. The bank charges 12,5% per annum, compounded monthly. Determine what Sam�s
minimum monthly payment will be if the loan has to be repaid in six years� time.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
15% deposit leaves him with 85% of principal, or 106,250
m=P(r/n) divided by 1-(1+r/n)^(-nt), n=12 t=6 r=0.125
P(r/n)=1106.77, but round at end only
1-(1+(.125/12)^(-72)=0.5258
m=the quotient or R2104.94 per month.
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