Suppose you take out a car loan of $17,000 with an interest rate of 14% compounded monthly. You will pay off the loan over 48 months with equal monthly payments. What is the amount of the equal monthly payment?
Added by Beatriz M.
Step 1
To find the monthly interest rate, divide the annual interest rate by 12 (since there are 12 months in a year). Monthly interest rate = 14% / 12 = 0.14 / 12 = 0.01167 or 1.167% Show more…
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