Instalment loan at 15% Bixby generator cost $1598 plus 5% tax payments for 3 years monthly payment is

Answer 1

The formula for calculating monthly payments is:

P = r(PV) / [ 1 - (1 + r)^-n] P = Payment, PV = Present Value, r = rate per period, n = number of periods

In this case: PV = $1598.00 x 1.05 (tax) = $1677.90 (total purchase price plus tax)

r = 15% per year, need to convert to decimal and equivalent monthly value = 0.15/12 = 0.0125

n = 3 years, need to convert to payment intervals in months = 3 x 12 = 36

so: P = 0.0125($1677.90) / [ 1 - (1.0125)^-36] = $58.17 / month