SOLUTION: Noah bought a new car costing $25,350. He made a. 20% down payment on the car and financed the remaining cost of the car for 5 years at 6.5%. How much will he have to repay?

Question 1118261: Noah bought a new car costing $25,350. He made a. 20% down payment on the car and financed the remaining cost of the car for 5 years at 6.5%. How much will he have to repay?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
Downpayment 20%: 25,350 - (25,350*0.20) = 20,280 total to finance
Is he going to make monthly payments? I will assume yes, since that's usually how you pay for a car:
5 years * 12 = 60 payments
Interest rate per payment period: 0.065/12 = 0.005417
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Principal[(rate(1+rate)^n))/((1+r)^n)-1)] = Monthly payment
20,280[(0.005417(1+005417)^60))/((1+0.005417)^60)-1)]
= 20,280(0.0074909/0.382845)
= 20,280(0.0195664) = 396.80 this is the monthly payment
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Monthly payment = 396.80
396.8*60 = 23,808 is how much he will pay in 60 months.

RELATED QUESTIONS
C. A university graduate bought a new car. The cash price is $19,000; he made a $ 1,400... (answered by solver91311)

The cash price for Roger�s new car was $9,428. The dealer required a 20% down payment.... (answered by rfer)

Calvin made a down payment of 12 1/2 on a used car that cost $2,400. How much was the... (answered by rfer)

Dale purchased a car for 26000. He paid 2,000 down and financed the rest over 5 years at... (answered by Alan3354)

Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and... (answered by Theo)

Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and... (answered by Studenttttt)

If the cost of a new car is $12,000 (plus 5% sales tax) and a down payment of 20%... (answered by rfer)

Bob paid a total of $32,000 for his new car, including his down�payment and the interest... (answered by checkley71)

Jennifer bought a brand new sports car. the price of the car was $14,900 including sport... (answered by mbarugel)