Question

swellana bought a car priced ar $10,307 for 11% down and the balance in equal quaterly payments over 6.25 years at 5% compounded quaterly. how much does swellana have to pay every three months ?

Answer 1

Loan amount = $10307-11%
=$9173.23
Quarterly payment = [P x R x (1+R)^N]/[(1+R)^N-1]
Where,
P= Loan Amount =$9173.23
R= Interest rate per period =5/12 =0.4166667%
N= Number of periods   =6.25*4 =25
= [ $9173.23x0.0041666667 x (1+0.0041666667)^25]/[(1+0.0041666667)^25 -1]
= [ $38.221791972441( 1.0041666667 )^25] / [(1.0041666667 )^25 -1
=$387.14