finance question

Question

You want to buy a car. To do so, you will need to take out a loan in the amount of $5,000. The longest you are willing to pay on the loan is five years. The interest rate on this type of loan is 16% per year. How much will the equal monthly payments be? 

Answer 1

Loan Amount    :   $5,000.00

Term of Loan    :   five years, 60 monthly payments

Interest Rate    :   16% per year

 

 

monthly payments Answer: $121.59

=PMT(16%/12,12*5,5000,,0)

Excel formula PMT