Question

Ricardo purchased a new car with the special 1.9% financing. If the car's price was $17,999 and he financed it for four years, find his monthly payment.

Answer 1

Exponential function formula

f(x) = P(1 + r)^t
f(x) = 17,999(1 + 0.019)^4
f(x) = 19406.406

Number of months in 4 years is 48
Thus you'll need to divide the resulting by 48

Monthly payment = 19406.406/48
Monthly payment = 404.3

So he will pay 404.3 Dollars per month for 4 years.

Answer 2

@carla98