You want to buy a new sports car from Muscle Motors for $44,300. The contract is

Question

You want to buy a new sports car from Muscle Motors for $44,300. The contract is in the form of a 72-month annuity due at a 6.05 percent APR.

What will your monthly payment be? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

You want to buy a new sports car from Muscle Motors for $44,300. The contract is in the form of a 72-month annuity due at a 6.05 percent APR.

Explanation / Answer

let monthly annuity = A

monthly int rate = .0605/12

44300 = A*(1-(1+0.0605)^-72)/(0.0605/12)

monthly payment =A= 735.22

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