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25 February, 11:51

Minh wants to bug a car costing 9950.00. She can put 1000.00 down amf finance the rest at 10.9% APR, making monthly payments for three years. How much will she pay in finance charges

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  1. 25 February, 12:07
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    Total cost of the loan is $10,533

    Find the monthly payment with interest and multiply by total number of months.

    Monthly payment:

    Use the formula {/displaystyle A=P * (r (1+r) ^{n}) / ((1+r) ^{n}-1) }.

    A = the monthly payment.

    P = the principal

    r = the interest rate per month, which equals the annual interest rate divided by 12

    n = the total number of months

    p=9950-1000 down payment = $8950

    r = 10.9/12 =.9083

    n = 3years * 12 months per year = 36

    A = 292.58

    292.58 per month * 36 months = 10,533
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