SOLUTION: Todd buys a car worth $41,000, makes a down payment of $5,000, and requires a loan for the balance of the car purchase. His credit union offers financing at 5.9% compounded monthly
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Question 1163689: Todd buys a car worth $41,000, makes a down payment of $5,000, and requires a loan for the balance of the car purchase. His credit union offers financing at 5.9% compounded monthly, for a term of 6 years, payable monthly.
What is Todd's monthly payment?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
Let 
represent the Monthly Payment for a fully amortized loan for a principal amount of 
at 
rate of interest per month expressed as a decimal for 
months.
^n}{(1\,+\,r)^n\ -\ 1})
Plug in your numbers and do the arithmetic. Hint: The principal amount is the purchase price of the item minus the down payment.
John
My calculator said it, I believe it, that settles it
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