You wish to buy a new car. The sticker price is $18.500. If the interest rate on car loans is 7.2% per year, compounded monthly, and you wish to finance the car over 5 years what will your monthly car payment be if the payment is to be made at the end of each month? Select one: as 368.07 b.$1,352 87 c.$ 365.88 d $4,536.17
Expert Answer
monthly rate = 7.2 /12 =.60%
number of months = 5*12=60
monthly payment = Sticker price amount / PVA .60%,60
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