QQuestionMathematics
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
Step 3:: Plug the values into the formula and calculate the monthly payment.
P = \frac{0.00249167 \times 40000}{1 - (1 + 0.00249167)^{-60}} \approx 704.42
Step 4:: Round the monthly payment to two decimal places.
P \approx 704.42
Final Answer
The payment on a 60 -month, 2.99% car loan for $40,000 is approximately $704.42 per month.
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