SOLUTION: You want to buy a $35000 car. The company is offering a 4% interest rate for 36 months (3 years). What will your monthly payments be?

Question 1181527: You want to buy a $35000 car. The company is offering a 4% interest rate for 36 months (3 years). What will your monthly payments be?
Found 2 solutions by ikleyn, math_tutor2020:
Answer by ikleyn(52788) (Show Source): You can put this solution on YOUR website!
.
You want to buy a $35000 car. The company is offering a 4% interest rate for 36 months (3 years).
What will your monthly payments be?
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This loan is simply interest of 4%. It means that in 3 years, you should repay 35000*(1+0.04*3) = 39200 dollars, in all. To find the monthly payment, divide this toal amount by 36 months your monthly payment = = 1088.89 dollars. ANSWER

Solved.

Answer by math_tutor2020(3817) (Show Source): You can put this solution on YOUR website!

@ikleyn has the incorrect answer.

L = 35,000 = loan amount
i = interest rate per month = 0.04/12
n = number of months = 36

P = monthly payment
P = (L*i)/( 1-(1+i)^(-n) )
P = (35,000*0.04/12)/( 1-(1+0.04/12)^(-36) )
P = 1,033.3394752395
P = 1,033.34

The answer has been confirmed with this calculator
https://www.calculator.net/loan-calculator.html
or you can use this calculator if you prefer
https://www.bankrate.com/calculators/mortgages/loan-calculator.aspx
Both of which are free.
There are tons more options of course, so feel free to use your favorite.

Answer: $1,033.34

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