Question

Calculate the monthly payment for a 5-year car loan of $23,570 at 10.43% interest, compounded monthly. a. $247.44 b. $337.56 c. $433.88 d. $505.79

Answer 1

Answer:

Its D on edge i got it correct.

Step-by-step explanation:

Answer 2

$\frac{pr(1+r)^n}{(1+r)^n-1}$Given:

Consider the given loan is $23,570

rate r = 10.43% = 0.00869

time t = 5 year

Find:

Calculate monthly payment that is EMI

Solution:

Since the given interest is compounded monthly then

p = $23,570

r = 0.00869

n = 5 x 12 = 60

Therefore the EMI will be

$\frac{pr(1+r)^n}{(1+r)^n-1} \\=\frac{23570(0.00869)(1.008691)^60}{(1.00869)^60-1}\\= 505.77$

Hence the correct option is (D).