SOLUTION: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.45% for as long as 60 months if

Question 1173024: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $155,000. Chuck can get a secured add-on interest loan from his bank at 7.45% for as long as 60 months if he pays 15% down. Chuck's goal is to keep his payments below $3,600 per month and amortize the loan in 42 months.
Find Chuck's monthly payment (in $) with these conditions. (Round your answer to the nearest cent.)
I got the number of payments 60 x 12 = 720
and i did 0.15/12 = 0.0125 for the monthly rate
but not sure how to continue from there.
Answer by CPhill(1959) (Show Source): You can put this solution on YOUR website!
Here's how to calculate Chuck's monthly payment:
**1. Calculate the Down Payment:**
* Down payment = 15% of $155,000 = $23,250
**2. Calculate the Loan Amount:**
* Loan amount = $155,000 - $23,250 = $131,750
**3. Calculate the Monthly Interest Rate:**
* Monthly interest rate = Annual interest rate / 12
* Monthly interest rate = 7.45% / 12 = 0.0745 / 12 = 0.00620833 (approximately)
**4. Calculate the Monthly Payment:**
* We'll use the loan payment formula:
* M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1]
* Where:
* M = Monthly payment
* P = Principal loan amount ($131,750)
* i = Monthly interest rate (0.00620833)
* n = Total number of payments (42 months)
* M = $131,750 [ 0.00620833(1 + 0.00620833)^42 ] / [ (1 + 0.00620833)^42 - 1]
* M = $131,750 [ 0.00620833(1.298715) ] / [ 1.298715 - 1]
* M = $131,750 [ 0.0080628 ] / [ 0.298715 ]
* M = $131,750 * 0.026991
* M = $3556.34 (approximately)
**Therefore, Chuck's monthly payment would be approximately $3,573.30**

RELATED QUESTIONS
At the theatre there are six seats in a row. Eliot and Doug have three people between... (answered by greenestamps,ikleyn)

At the theatre there are six seats in a row. Eliot and Doug have three people between... (answered by ikleyn)

Armstrong Faber produces a standard number-two pencil called Ultra-Lite. Since Chuck... (answered by ElectricPavlov)

June is 15 years older than Chuck is now. 5 years from now June will be twice as old as... (answered by josgarithmetic,ikleyn)

How much wood could a woodchuck chuck, if a woodchuck could chuck wood? Chuck chuck... (answered by longjonsilver)

An average grade of 80 on all exams in a course is needed to earn a B in the course. On... (answered by josgarithmetic,ikleyn,greenestamps)

Hello, Please help with this word problem and show steps on how you recieved... (answered by checkley71)

Hi the question is this Chuck and Dana agree to meet in Chicago for the weekend. Chuck... (answered by checkley77,solver91311)

Translate the problem into a pair of linear equations in two variables. Solve the... (answered by mananth)