Question

Suppose you can get a 24-month, 6% APR loan (monthly compounding) to buy the just released iphone 11 Pro Max, which is priced at $1,099 (suppose you do not have sales tax in your state). What will your monthly payment be?

Answer 1

Monthly payment will be $ 48.71

Monthly Payment		=	Loan amount	/	Present Value of annuity of 1
		=	$1,099.00	/	22.56286622
		=	$48.71
Working:
Loan amount is equal to the price of iphone 11 Pro Max.
Present Value of annuity of 1	=	(1-(1+i)^-n)/i		Where,
		=	(1-(1+0.005)^-24)/0.005		i	=	6%/12	=	0.005
		=	22.56286622		n			=	24
Alternatively,
Monthly Payment			=-PMT(rate,nper,pv,fv)
			= $48.71
Where,
rate		=	0.005
nper		=	24
pv		=	$1,099.00
fv		=	0