SOLUTION: You want to buy a $20,000 car. The company is offering a 5% interest rate for 60 months (5 years). What will your monthly payments be?

Question 1054137: You want to buy a $20,000 car. The company is offering a 5% interest rate for 60 months (5 years). What will your monthly payments be?
Found 2 solutions by Boreal, MathTherapy:
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
20000=payment*{(1-r/n)^nt-1}/(r/n)
r/n=0.05/12
nt=5*12=60
20000=P(1.00416667)^60)-1)/0.0041667, multiply both sides by 0.00416667
83.33=P(0.2833)
P=$294.09

Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!

You want to buy a $20,000 car. The company is offering a 5% interest rate for 60 months (5 years). What will your monthly payments be?

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