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math

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Suppose a car cost 32000 and you are allowed to make a down payment of 20%, but have to borrow the remaining 80%. If you are allowed 5 years to pay back the loan, how much will you pay back monthly?

  • math -

    What interest rate is your lender charging you?

    Without figuring interest,

    32,000 * 0.8 = 25,600

    25,600 / 60 = ?

  • math -

    The interest rate is 3.69%

  • math -

    let the monthly payment be P
    i = .0369/12 = .003075
    n = 60
    80% of 32000 = 25600

    P( 1 - 1.003075^-60)/.003075 = 25600
    P = $467.89

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