Thomas purchased a Mazda 5 for 14,000. What are the monthly payments for a 6 year loan with a 1000 down payment if the annual interest rate (APR) is 2.5%?
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PMT = PVr/(1- (1+r)^-n) with r & n adjusted for periodicity
loan financed = 13,000 = PV
PMT = 13000*(.025/12) / (1- (1+.025/12)^-72) = 194.62 <-------
loan financed = 13,000 = PV
PMT = 13000*(.025/12) / (1- (1+.025/12)^-72) = 194.62 <-------