If you finance $25,000 auto loan for a 60-month period at 0.4% interest per month, your monthly payments will be c. $469.49.
- Your monthly payment will not be a. $373.24
, b. $416.67, or d. $482.02.
Data and Calculations:
N (# of periods) = 60 months (5 years)
I/Y (Interest per year) = 4.8% (0.4% per month)
PV (Present Value) = $25,000
FV (Future Value) = x
P/Y (# of periods per year) = 12
C/Y (# of times interest compound per year) = 12
PMT made at the of each period
Results:
Monthly Payment = $469.49
Sum of all periodic payments (x) = $28,169.00 ($469.49 x 60)
Total Interest = $3,169 ($28,169 - $25,000)
Thus, the payments per month will be $469.49.
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