Answer:
The monthly payment required is $335.57
Explanation:
Using excel formula pmt, the monthly payment on the car loan can be calculated.
The formula is given pmt(rate,nper,-pv,fv)
Note that the future value here is zero
pv=$18000
rate=4.5% annually and 4.5%/12 monthly=0.00375
nper is 5 years annually but 5*12 monthly=60
The monthly payment is $335.57
Please note that the pv has a negative sign and the pv is zero
Kindly find attached spreadsheet showing how the monthly payment was arrived at.
