Suppose you want to buy a new car. You know that cars are a bad investment...

 

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Suppose you want to buy a new car. You know that cars are a bad investment but you need transport and you've never had a new car so you've found one that's more than adequate and reasonably priced and you're willing to keep it for 10 years. This car costs $22,000. The bank offers to loan the money to you at 5% annual interest with payments over 48 months. What will your monthly car payment be for the next four years? Suppose you want to buy a new car. You know that cars are a bad investment but you need transport and you've never had a new car so you've found one that's more than adequate and reasonably priced and you're willing to keep it for 10 years. This car costs $22,000. The bank offers to loan the money to you at 5% annual interest with payments over 48 months. What will your monthly car payment be for the next four years?

Answer rating: 100% (QA)

To calculate the monthly car payment we can use the formula for a ... View the full answer