10 pts Suppose youve bought a car worth 30000 and plan to pa

(10 pts) Suppose you\'ve bought a car worth $30,000, and plan to pay it off over 60 monthly payments. However, you are given a 3 month grace period during which interest is still earned (skip 3 payments) before your monthly payments begin. What will be the monthly payments ifyour nominal interest rate is l% compounded monthly? 5.

Solution

Loan amount 30,000 Annuity factor for 60 instalment At 0.50% monthly interest starting 3 monthly instalment 50.9574 (53.9276 - 2.9702) Monthly instalment 588.73 (30000/50.9574)