Answer to Question #178864 in Financial Math for David

Question #178864

Bill makes car payments of $273/month for the next 3 years.


His car loan has an interest rate of 2.6%, discounted monthly.


What was the initial price of the car?



1
Expert's answer
2021-05-02T08:12:48-0400

calculating the initial price of the car

where Pv is the present(initial value)

PMT is the amount of monthly payment

r is the rate of discount

n is the number of repayment periods.

we need to find the number of periods in months; 3*12=36 months

=6332.41


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