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 an APR of  6.05 percent.

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

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

Explanation / Answer

monthly rate = 6.05/12 = 0.504

let monthly payment be A

44300 = A/0.00504 * [1-1(1.00504)^72]

A= 735.18

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