contestada

Tetsuo has decided to purchase a new car. He decides to put 10% down and finance the remaining balance. The bank offers Tetsuo a 36-month loan at 6.71%. If the car is valued at $32,000, what will his monthly payments be?

Respuesta :

sc296

Answer:

885.45

Step-by-step explanation:

Tetsuo's monthly payments would be $887.5.

What is monthly installments?

'Monthly Installment means such amount as specified in the Schedule or as may be revised from time to time by the Lender, payable by the Borrower/s to the Lender, on a monthly basis.'

According to the given problem,

Value of the car = $32000

Time period = 36 months

                    = 3 years

Rate of Interest = 6.71%

10% down from 32000  =  32000 - (0.1 × 32000)

                                       = $28800

Applying rate of interest,

⇒ (6.71/100) * 28800 * 3

= $5797.44

In one month, rate of interest = 5797.44/36

                                                 = $161

Principal amount payable per month = 28800/36

                                                             = $800

Total payable amount = $ ( 800 + 161 )

                                     = $961

Hence, we can conclude, Tetsuo needs to pay $961 as monthly installments.

Learn more about monthly installments here: https://brainly.com/question/21444205

#SPJ2

Otras preguntas