Monthly Car Payment Problem

[Stevencan2]

Hello, first off, apologies if this is in the wrong forum, let me know and I'll happily put it elsewhere. Secondly, I'm new to this site, if there is anything I have done wrong, feel free to let me know. I have four homework problems that I'm stuck on, if I could just see one worked il be able to learn it and work the remaining three.

A student wishes to buy a range rover priced at $66,000. He/she will pay a 10% down payment, and amortize the rest over a 5-year period at a 7.5% annual rate compounded monthly. Compute the monthly payments excluding insurance and taxes. Round payments UP to the nearest cent and round months up to the nearest month.

Thanks so much!

 

[Deleted member 4993]

Hello, first off, apologies if this is in the wrong forum, let me know and I'll happily put it elsewhere. Secondly, I'm new to this site, if there is anything I have done wrong, feel free to let me know. I have four homework problems that I'm stuck on, if I could just see one worked il be able to learn it and work the remaining three.

A student wishes to buy a range rover priced at $66,000. He/she will pay a 10% down payment, and amortize the rest over a 5-year period at a 7.5% annual rate compounded monthly. Compute the monthly payments excluding insurance and taxes. Round payments UP to the nearest cent and round months up to the nearest month.

Thanks so much!

We need to see your work to determine where we must start to help you.

Begin with amount borrowed = 0.9*66000 = 59400 = A

n = number of payments = 12*5 =60

r = 0.075/12 = 0.00625

Payment = A * (1+r)ⁿ * r/[1-(1+r)ⁿ]

Now your turn......

 

[Stevencan2]

We need to see your work to determine where we must start to help you.

Begin with amount borrowed = 0.9*66000 = 59400 = A

n = number of payments = 12*5 =60

r = 0.075/12 = 0.00625

Payment = A * (1+r)ⁿ * r/[1-(1+r)ⁿ]

Now your turn......

Thanks for replying to my post

Shouldn't the amount borrowed equal 6600? That's just my guess and I went ahead and used that in the formula, correct me if i'm wrong.

6600*(1+.00625)⁶⁰* .00625/[1-(1+.00625)⁶⁰
9591.74*-0.01378948596=-132.27

I dont feel like that answer is correct but that is what I kept getting. Thanks again for your help!