In-Class-Work: Sept.

25
You borrow $15,000 from your credit union to purchase a used car. The
interest rate on your car loan is 0.5% per month and you will make a total
of 30 monthly payment starting a month from now. What will be your
monthly payment?

i (1 i ) N
( A / P, i , N )
(1 i ) N 1

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In-Class Work: Sept. 25 (Solution)

You borrow $15,000 from your credit union to purchase a used
car. The interest rate on your car loan is 0.5% per month and
you will make a total of 30 monthly payment starting a month
from now. What will be your monthly payment?

29

30

The amount of the car payment can be calculated as:

A = $15,000(A/P, 0.5%, 30)
= 15,000(0.03598) = 539.7

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