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Monthly Payment of a Car

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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?

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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.

Solution Preview

The answer is $552.42

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

where
M = ...

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