algebra/math

Find the amount of interest and the monthly payment for the loan. Purchase a car for $42,700 at 2.5% add-on rate for 5 years. (Round your answers to the nearest cent.)
$ interest
$ per month

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

    r = (2.5% / 12) / 100% = 0.002083 = monthly % rate expressed as a decimal.

    t = 12mo/yr * 5yrs = 60 months.

    Pt=42700*0.002083*60 / (1-(1.002083)-60
    =5337.4991 / 0.117388323=$45,468.74

    Int. = 45,468.74 - 42700 = $2768.74

    Monthly=Pt / t=45468.74 / 60 = $757.81

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  2. find the amount of interest and monthly payment for loan. Purcase a living room set for 3,900 at 12% add-on interest for 2 years. round your monthly payment to the nearest cent.

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