A car with a sticker price of $42,850 with factory and dealer rebates of $5,100
Find the monthly payment if financed at 2.5% add-on interest for 60 months.
Im sorry I got that but how do I figure the apr?
got it I have the formula for apr=2 NR/N +1
To find the monthly payment for the car financed at 2.5% add-on interest for 60 months, you'll need to use the formula for calculating add-on interest.
The formula for add-on interest is:
Total Interest = Principal Amount * Interest Rate * Loan Period
First, let's calculate the total interest on the loan:
Principal Amount = Sticker Price - Rebates
Principal Amount = $42,850 - $5,100 = $37,750
Interest Rate = 2.5% = 0.025 (expressed as a decimal)
Loan Period = 60 months
Total Interest = $37,750 * 0.025 * 60
Total Interest = $56,625
Next, let's calculate the total amount to be financed:
Total Amount Financed = Principal Amount + Total Interest
Total Amount Financed = $37,750 + $56,625
Total Amount Financed = $94,375
Now, to find the monthly payment, divide the total amount financed by the number of months:
Monthly Payment = Total Amount Financed / Loan Period
Monthly Payment = $94,375 / 60
Monthly Payment ≈ $1,572.92
Therefore, the monthly payment for the car financed at 2.5% add-on interest for 60 months is approximately $1,572.92.