Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent.
-Marge and Tom Martin bought a new car for $30,000. They agreed to pay 25% down and make monthly payments for 4 years at 10% (compounded monthly)to pay off the rest.

Question

Find the payment necessary to amortize the loan using the amortization table. Round to the nearest cent. 
-Marge and Tom Martin bought a new car for $30,000. They agreed to pay 25% down and make monthly payments for 4 years at 10% (compounded monthly)to pay off the rest.

Quizplus · Accepted Answer

The down payment is 25% of $30,000, which is $7,500. The remaining balance is $22,500. The monthly interest rate is 10%/12 = 0.8333%. Using the formula for monthly payments on an amortizing loan, the monthly payment is approximately $570.60.

Find the Payment Necessary to Amortize the Loan Using the Amortization