George is going to buy a new Chevy Jupiter for $20300. The dealership will offer a loan for the total value of the car at 9.75% APR for 4 years.
Round all answers to the nearest penny. Use Web Loan Calculator to answer part of this question
Okay so i understand how to do it, but my thing is , is that I come out with the correct answer as in the whole number, but when it comes down to the change it be wrong and im not understanding why?
P = (Po*r*t)/(1-(1+r)^-t).
Po = $20,300.
r = 0.0975/12 = 0.008125/mo.
t = 4yrs. * 12mo./yr. = 48 mo.
P = (20,300*0.008125*48)/(1-1.008125^-48).
P = 7917/(1-1.008125^(-48)),
P = 7917/0.32187535 = $24,596.48.
M.P. = P/48. = 24,596.48/48 = $512.43.