HELP PLEASE!!! ASSIGNMENT DUE SOON

Question

Kawai requires a loan of $33,000 to buy a used sport utility vehicle. His banks offers financing at 6.75% compounded monthly, for a term of 6 years, payable monthly. What is the total cost of this loan?

Answer 1

I will use TI-84 FInancial Solver to get monthly payment: PV = 33000; I = 6.75%; N = 6·12 = 72; FV = 0;

P/Y = 12; C/Y = 12. I get PMT = $558.66

Now total amount A = PMT·N = 558.66·72 = $40223.52

Answer 2

A=P(1+r/m)^mt

A - amount

P- principle = $33000

r= rate=6.75%=0.0675

t=6

m=12