math

Kate bought a new car priced at $21,300 with 15% down and the balance in equal payments over 4 years at 7% compounded monthly. Determine the size of the monthly payments? The answer is $433.65 please show me the steps

  1. 👍 0
  2. 👎 0
  3. 👁 62
asked by Daniel
  1. PV = payment (1 - (1+i)^-n )/i
    you should know this formula

    balance is .85(21300) = 18105
    i = .07/12 = .0058333...
    n = 48

    18105 = payment (1 - 1.00583333..^-48)/.0058333..
    18105 = payment ( 41.76020173)
    payment = 18105/41.76... = $ 433.55

    ( I carried all the decimals my calculator could hold, they must have rounded off before they got to the final answer, not a good idea if you have a calculator)

    1. 👍 0
    2. 👎 0
    posted by Reiny

Respond to this Question

First Name

Your Response

Similar Questions

  1. algebra 1

    Solve the following problem: Kate bought a car for $20,000. A study shows that a car will depreciate (go DOWN in value) by 15% each year. How much is Kate's car worth after 5 years? a) Formula used:

    asked by hello on February 6, 2018
  2. Social Studies help

    Which group in Chinese society is not given equal education and job opportunities? A. Other countries did not want the low-priced products. B. Other countries quickly bought the low-priced products. C. Other countries made

    asked by A Person on April 4, 2017
  3. Algerbra 1

    Shane and Kate are preparing to go on long car trips with their families. Shane bought 8 books and 2 CDs for $73.60. Kate bought 3 books and 4 CDs for $69.85. Both totals were withour tax. All of the books were the same price and

    asked by Jessica on February 10, 2011
  4. Math Problem

    Mrs. Bond made a deposit of $100 into her checking account. Then she wrote checks for $97.54 and $48.27. If her previous balance was $320.39, what is her new balance? - I also need help with Mika bought two copies of the same book

    asked by Anonymous on March 16, 2015
  5. Math

    Please help me write this in an equation. "Tyrone bought 15.3 gal of gasoline priced at g dollars per gallon, 2 qt of pil priced at q dollars per quart, and a wiper blade priced at $3.79. Write an expression that represents the

    asked by Christine on November 9, 2014
  6. math

    There was a sidewalk sale at Mega Mall. Everything was marked down by30%. Rodrick bought 3 pairs of jeans originally priced at $29.95 each,a shirt originally priced at $18.50 and a pair of sandals originally priced at $32.29. The

    asked by Autumn on December 16, 2014
  7. Social Studies

    What effect did workers' low wages in China and Taiwan have on export sales? a. other countries did not want the low-priced products. b.other countries quickly bought the low-priced products c.other countries made low-priced

    asked by Help on March 13, 2015
  8. English

    1. They are balls on the desk. 1-2. The balls on the desk are some. (Are they grammatical? Would you change them into correct ones?) 2. Is given name first mame or middle name? 3. I live with my parents in the country. 3-1. I live

    asked by John on November 5, 2008
  9. Math, help needed

    Kate bought 3 CDs and 1 DVD at a store. Her friend Joel bought 2 CDs and 2 DVDs. If Kate spent $20 and Joel spent $22, determine the cost of a CD and DVD. ~Please provide an explanation as well. Please and thanks!

    asked by Mari on January 19, 2012
  10. Math.

    Kate bought 3 CDs and 1 DVD at a store. Her friend Joel bought 2 CDs and 2 DVDs. If Kate spent $20 and Joel spent $22, determine the cost of a CD and DVD. ~Please provide an explanation as well. Please and thanks!

    asked by Mari on January 19, 2012

More Similar Questions