Question

Kevin buys a motorcycle for $8,000. The dealer is charging him an annual interest rate of 8.25%. If he pays off the loan in 72 months, what are his monthly payments?

If he makes a downpayment of $3,000, how much will his monthly payments be rounded to two decimal points?

Answer 1

a.	Monthly Payment	=-pmt(rate,nper,pv,fv)
		= $ 141.24
	Where,
	rate	=	Monthly interest rate	=	8.25%/12	=	0.006875
	nper	=	Number of period		=	72
	pv	=	Loan amount		=	$       8,000
	fv	=	Future value of loan	=	0
b.	Monthly Payment	=-pmt(rate,nper,pv,fv)
		= $    88.28
	Where,
	rate	=	Monthly interest rate	=	8.25%/12	=	0.006875
	nper	=	Number of period		=	72
	pv	=	Loan amount	=	8000-3000	=	$       5,000
	fv	=	Future value of loan	=	0