math homework apr

Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.

To buy a car, you borrow $23,000 with a term of five years at an APR of 6%. What is your monthly payment? (Round your answer to the nearest cent.)

$ 

How much total interest is paid? (Round your answer to the nearest cent.)

$ 

Answer 1

p = r(v) / (1 - ( 1 + r)^-n)

p = 0.005(23000) / (1 - (1 + 0.005)^-60

p = 115 / (1 - 0.741372196)

p = 115 / 0.258627803

p = 444.6544352

60p is total payment

Interest is 60p - 23000