document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1118261>Question 1118261</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #733544 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=733544\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Downpayment 20%: 25,350 - (25,350*0.20) = 20,280 total to finance<BR>\n" );
document.write( "Is he going to make monthly payments? I will assume yes, since that's usually how you pay for a car:<BR>\n" );
document.write( "5 years * 12 = 60 payments<BR>\n" );
document.write( "Interest rate per payment period: 0.065/12 = 0.005417<BR>\n" );
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document.write( "Principal[(rate(1+rate)^n))/((1+r)^n)-1)] = Monthly payment<BR>\n" );
document.write( "20,280[(0.005417(1+005417)^60))/((1+0.005417)^60)-1)]\r<BR>\n" );
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document.write( "= 20,280(0.0074909/0.382845)<BR>\n" );
document.write( "= 20,280(0.0195664) = 396.80 this is the monthly payment<BR>\n" );
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document.write( "Monthly payment = 396.80<BR>\n" );
document.write( "396.8*60 = 23,808 is how much he will pay in 60 months.<BR>\n" );
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