Q
QuestionMathematics

What is the payment on a 60 -month, 2.99% car loan for $40,000?
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Answer

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Step 1
: Identify the formula for calculating the monthly payment on a loan.

P = \frac{rPV}{1 - (1 + r)^{-n}}
The formula is where: - 1$ is the number of payments (loan term in months).

Step 2
: Calculate the monthly interest rate.

r = \frac{i}{12} = \frac{2.99\%}{12} = 0.00249167

Final Answer

The payment on a 60 -month, 2.99% car loan for $40,000 is approximately $704.42 per month.