SOLUTION: To help consumers in this tough economic climate, Pikes Peak Harley-Davidson offered to finance a new motorcycle for qualifying customers at 15% down, 7.5% interest for 48 months d

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Question 805106: To help consumers in this tough economic climate, Pikes Peak Harley-Davidson offered to finance a new motorcycle for qualifying customers at 15% down, 7.5% interest for 48 months during July 2009. Rich Martinez was interested in calculating what his monthly payment would be if he bought a $29,386 bike.


Calculate his monthly payment to the nearest cent.
Answer by josgarithmetic(39623) About Me  (Show Source):
You can put this solution on YOUR website!
He will finance 29386*(0.85) and his total payments in 48 months would be %2829386%2A%280.85%29%2B%280.075%29%2829386%29%280.85%29%29%2F48

The first part in the numerator shows the amount he owes on the price, and the second part shows the amount of interest; but the entire numerator is divided into the 48 months. This is financed portion plus the interest for the financed portion.

Expression may be handled as 29386%280.85%29%281%2B0.075%29%2F48
29386%280.85%29%281.075%29%2F48 monthly payment.

559.40 dollars per month.