Question

You want to buy a new sports car from Muscle Motors for $37,000. The contract is in the form of a 36-month annuity due at a 8.25 percent APR.

  

Required:

What will your monthly payment be?

rev: 09_17_2012

$1,163.72

$1,178.89

$1,155.77

$1,097.98

$1,132.66

Answer 1

Given,

Cost of car = $37000

APR = 8.25% or 0.0825

No. of months (n) = 36 months

Solution :-

Monthly rate (r) = 0.0825 x 1/12 = 0.006875