Calculating equal monthly loan payments
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Chrysler is offering a choice of either 48 month 2.0% APR financing, OR $2000 cash back if you pay "cash" on a car purchase. The stated price is $25,000. If you can obtain bank financing at 5.75% APR (monthly compounding), what would be the implied monthly loan payments if use your bank for financing and thus drop the price by the $2000 cash rebate? Assume 48 month term for the bank loan also.
a.815
b.2168
c.616
d.538
e.insufficient information to compute.
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Solution Summary
Solution describes the steps to calculate equal monthly loan payments.
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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