Lexi wants to buy a Tesla Model S .The car will cost $68,000 and she has $20,000 as a down payment.If she will finance the rest with a 4 year 6% APR loan with monthly payments,how much will her monthly payments be?

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Quizplus · Accepted Answer

To calculate the monthly payment for a loan, you can use the formula for a fixed-rate loan: $PMT = P \times \frac{r(1+r)^n}{(1+r)^n-1}$, where PMT is the monthly payment, P is the principal amount (total loan amount), r is the monthly interest rate (annual rate divided by 12), and n is the total number of payments (months). Here, P = $68,000 - $20,000 = $48,000 (loan amount after down payment), r = 6% annual rate or 0.06/12 per month, and n = 4 years * 12 months/year = 48 months. Plugging these values into the formula gives a monthly payment of approximately $1,127.28.

Lexi Wants to Buy a Tesla Model S