Answer:
so correct option is B) $527
Explanation:
given data
cost = $28,000
offer APR = 4.9 % = [tex]\frac{4.9}{12}[/tex] = 0.0041
time = 60 months
finance the entire = $28,000
solution
we will apply here formula for calculate monthly payment that is
= [tex]\frac{r(1+r)^t}{(1+r)^t -1}[/tex] ...........1
here r is rate that is 0.0041 and t is time that is 60 put here value we get
= [tex]\frac{0.0041(1+0.0041)^{60}}{(1+0.0041)^{60} -1}[/tex]
= 0.01883
so monthly payment is = 28000 × 0.01883
monthly payment is $527
so correct option is B) $527
Answer:
Correct option is (B)
Explanation:
Given:
Cost of automobile (PV) = $28,000
APR = 4.9% or 0.049
Monthly interest rate = 0.049÷12
= 0.0041
Time period (nper) = 60
Use spreadsheet function =pmt(rate,nper,-PV) to compute monthly payment.
Monthly payment is $527.37 or $527.
PV is negative as it is a cash outflow.
