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
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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
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Monthly payment = 396.80
396.8*60 = 23,808 is how much he will pay in 60 months.
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