Question

Please helppp: You buy a car for $13,000 and take out a loan for the whole thing with no down payment. If the loan is paid over five years at 9%, what is the monthly payment?

Answer 1

you will use the formula

P = L[c(1 + c)^n]/[(1 + c)^n - 1]

where

P = monthly payment
L = total loan amount
c = monthly interest rate
n = number of payments

Answer 2

In this case,

P = unknown
L = 13000
c = 0.09/12 = 0.0075
n = 12*5 = 60