SOLUTION: You want to buy a car. The loan amount will be $28,000. The company is offering a 2% interest rate for 60 months (5 years). What will your monthly payments be?

Question 1195626: You want to buy a car. The loan amount will be $28,000. The company is offering a 2% interest rate for 60 months (5 years). What will your monthly payments be?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
this is (r/n)*P*(1+(r/n))^nt/(1+(r/n))^n-1
round at end
0.02/12=0.0016667 and *P=46.66667
the second part is 1.0016667^60 (5 years) divided by 1.0016667^60 minus 1
that is 10.517
Multiply that by the first part above to get $490.78
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