Overhaulin'

Calculate the monthly loan payments needed to pay off a 3-year car loan of $4500 at the annual interest rate o?

a. $145.73 b. $208.11 c. $189.74 d. $138.76 Calculate the monthly loan payments needed to pay off a 3-year car loan of $4500 at the annual interest rate of 10.25%

Public Comments

1. $145.73 There's the answer. Don't recall how to get it though...
2. PMT = PV*r /(1 - (1+r)^-n , with r & n adjusted for periodicity = 4500*(0.1025/12) /(1 - (1+0.1025/12)^(-12*3) ) = $145.73 -------------- note: since payments are monthly, i have taken compounding also to be monthly -------