Mr. Steiner purchased a car for about $14,000. Assuming his loan was compounded monthly at an interest rate of 4.9% for 72 months:
p=
r=
n=
t=
A. How much will he have paid total?
B. How much more did he pay than the price of the car?

$415.18

Explanation:

The calculation of the present value of a cash flow or other income stream that produces $1 in income over so many periods of time.

DATA

Amount borrowed = $12,500

Annual interest rate = 12.00%

Monthly interest rate = 1.00%

Period = 36 months

Let monthly payment be x

12,500 = x/1.01 + x/1.01^2 + x/1.01^3  … + x/1.01^35 + x/1.01^36

12,500 = x * (1 - (1/1.01)^36) / 0.01

12,500 = x * 30.107505

x = 12,500/30.107505  

x = 415.18

The monthly payment is $415.18

$9.41

step-by-step explanation: