Matt wants to buy a new riding lawn mower. The price is $2595. He finances the mower over 36 months after making a down payment of $395. The true annual interest rate is 12%. What is Matt’s monthly payments? (Principal plus interest)
Use the formula I = (2yc)/(m(n+1))
I(Interest)= 2YC/(M(N+1)), where y = payments per year; c = total interest paid; m = amount financed; n = total number of payments.