Explore BrainMass
Share

Explore BrainMass

    Monthly Payment of a Car

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I plan to buy a new car. The price is $30,000 and I will make a down payment of $4,000. My annual interest rate is 10% and I intend to pay for the car over five years. What will be my monthly payment?

    © BrainMass Inc. brainmass.com October 10, 2019, 7:12 am ad1c9bdddf
    https://brainmass.com/economics/finance/monthly-payment-car-572282

    Solution Preview

    The answer is $552.42

    The formula is
    M = (Pv*R)
    -----------------
    [1 - (1 + R)^(-n)]

    where
    M = ...

    Solution Summary

    This solution shows how to calculate a monthly payment if you know the interest rate, down payment, and total cost with step-by-step calculations and formulas included.

    $2.19