SOLUTION: You want to buy a $35,000 car. The company is offering a 2% interest rate for 36 months (3 years). What will your monthly payments be? (Round up to the cents place.)
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Question 1190578: You want to buy a $35,000 car. The company is offering a 2% interest rate for 36 months (3 years). What will your monthly payments be? (Round up to the cents place.) Answer by math_tutor2020(3817) (Show Source):
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P = monthly payment
L = loan amount = $35,000
i = interest rate per month = 0.02/12 = 0.0016666667 (approximate)
n = number of months = 12*3 = 36
P = (L*i)/( 1-(1+i)^(-n) )
P = (35,000*0.0016666667)/( 1-(1+0.0016666667)^(-36) )
P = 1,002.49025624712
P = 1,002.50
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