Nichole wants to buy a Dodge Charger that costs $29,500. She will make a $6,000 down payment and borrow the remaining with a 72-month loan that has an annual interest rate of 4.8%. Determine Nichole’s monthly car payment to the nearest dollar amount.

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  $376

Step-by-step explanation:

The amount financed is the cost less the down payment:

  financed = $29,500 -6000 = $23,500

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The payment amount is given by the amortization formula.

  A = P(r/12)/(1 -(1 +r/12)^-n)

loan payment on principal P at annual rate r compounded monthly for n payments.

Using the given numbers, this is ...

  A = $23,500(0.048/12)/(1 -(1 +0.048/12)^-72) = $23,500(0.004)/(1 -(1.004^-72))

  A ≈ $376.29

Nicole's monthly payment will be about $376.

step-by-step explanation:

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