QUESTION 1 You buy a boat for $48,000. You agree to a 36-month loan with a monthly interest rate of 0.77 percent. What is your required monthly payment? $1,189.36 $1,457.68 $1,756.84 $1,531.75
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Step 1: The monthly payment can be calculated using the following formula: $$PMT = \frac{PV \times r \times (1 + r)^n}{(1 + r)^n - 1}$$ where: * PMT is the monthly payment * PV is the present value of the loan (the amount borrowed) * r is the monthly interest rate Show more…
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