Question

Buying a car from a classmate. One of your classmate is selling you a car with a purchase price of $16000 and provides financing at annual percentage rate of 4%. Because you are currently making tuition payments, your friend does not require the first monthly payment until 6 months from today. However, after the first payment you are required to make 12 more payments of that same amount. If you put down payment for $ 5000 today, what is your monthly payment?

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

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