Below is a common problem in which the payments are not the same time period as the interest rate or the time period In order to compute the payment comectly you need to adjust all variables so that they ane the same period as the payment (note some calculators might do this automatically, you can set them so they do not do automatically make this correction) So if the problem has monthly payments, but the problem has an annual interest rate and time period over years, you would need to divide the interest by 12 and mutply the tme period by 12 You would make similar adjustments if the payment was per day or semi annual You are considering buying a new motorcycle You are going to borow $10,334 if you can negolate a nominal annual interest rate of 6 percent (ie 6% equals the APR) and you wish to pay for the car over a 3 year period, what are your monthly car payments