math

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mr. greatest bought an aotomobile for $250,000and paid a 20% down payment .it the rate of interest is 6.5% per year, and he agrees to pay the balance in 20 equal monthly installments,what is the amount of each installment?

  • math -

    %Financed = 100% - 20% = 80%.
    Po = 0,80 * 250000 = $200,000 = Amt.
    financed.

    P = (Po*r*t)/(1-(1+r)^-t).

    r = (6.5%/12)/100% = 0.005417 = Monthly % rate expressed as ma decimal.

    t = 20 Months.

    Plug the above values into the given Eq and solve for P.

    Answer: P = $211,570.27.

    Monthly = P/t.

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