Suppose you want to borrow $25,000 for a new car. You can borrow at 6% per...

 

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Suppose you want to borrow $25,000 for a new car. You can borrow at 6% per year, compounded monthly (6/12 = 0.5% per month). If you take a 5 year loan, what is your monthly payment? Since the monthly payment is an outflow, enter your answer as a negative number, rounded to two decimals, no dollar sign, e.g., -217.34. Suppose you want to borrow $25,000 for a new car. You can borrow at 6% per year, compounded monthly (6/12 = 0.5% per month). If you take a 5 year loan, what is your monthly payment? Since the monthly payment is an outflow, enter your answer as a negative number, rounded to two decimals, no dollar sign, e.g., -217.34.

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To calculate the monthly payment for a loan using the formula for an ... View the full answer