Today, you are borrowing $7,800 to purchase a car. What will be your monthly payment if the loan is for four years at 6.45 percent interest?

Monthly payment if the loan for four years:

Given:

Total loan = $7800

Interest payment = 6.45 % per year

Length of payment = 4 years

Let X = monthly payment in dollars

X = (7800 + (7800*.0645) (4)) / 4*12

X = (7800 + (503.10) 4) / 48

X = (7800+2012.40) / 48

X = 9812.40/48

X = 204.43 (rounded off)