Answered

Find solutions to your questions with the help of IDNLearn.com's expert community. Get accurate and detailed answers to your questions from our dedicated community members who are always ready to help.

You want to buy a new sports coupe for $84,600and the finance office at the dealership has quoted you an APR of 7.1 percent, compounded monthly, for 72 months. How much interest will you pay over the life of the loan assuming you make all payments on a timely basis

Sagot :

Answer: $20981.52

Explanation:

Loan amount = $84600

APR = 7.1% = 0.071

Monthly interest rate = 0.071/12 = 0.0059167

Number of months NPER = 72

Future value FV = 0

Monthly payment = PMT(0.0059167, 72, -84600, 0, 0) = $1466.41

Total loan payment = 72 × $1466.41 = $105581.52

Interest paid = Total loan payment - Loan amount

= $105581.52 - $84600

= $20981.52

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.