Question

Could someone help me with these three questions? It's urgent.

Hazel is thinking of buying a $27,700 car by making a down payment of 8% of the purchase price, taking out a loan at an interest rate of 5.76%, compounded monthly, and making monthly payments for the next 5 years.

1) How much will Hazel have left to borrow after making the down payment?
2) What will be Hazel's monthly payment?
3) How much will Hazel pay in total for the car?

Answer 1

1) 8% of $27.700 is $2.216
Hazel will have to borrow $25,484

2) 5.76% compounded monthly is `5.76/12=0.48%` a month

`12xx5=60` payments over the five years

`($25,484xx1.0048^60)/60` will give the monthly payment

`($33,966)/60`

`=> $566.10` a month

3) Total is $2,216 + $33,966.06= $36,182.06