SOLUTION: 2. Assume you want to purchase television set at a cost of $184,000. You are able to make a down payment of $24,000 and will borrow $160,000 for 5 years at an interest rate of 7.80

Question 1187350: 2. Assume you want to purchase television set at a cost of $184,000. You are able to make a down payment of $24,000 and will borrow $160,000 for 5 years at an interest rate of 7.80%. How much is your monthly payment?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
the purchase price is 184,000.
the down payment is 24,000.
the amount of the loan is 184,000 - 24,000 = 160,000.
the term of the loan is 5 yearss.
the interest rate of the loan is 7.8% per year compounded monthly.
divide that by 12 to get an interest rate of 7.8/12 = .65% per month.
multiply the number of years by 12 to get 5 * 12 = 60 months.

the payment at the end of each month will be equal to 3228.93 rounded to the nearest penny.

the online calculator at https://arachnoid.com/finance/index.html shows the results.

here they are:

input is everything but pmt.
output is pmt.

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