After graduating from college and securing your first job in your field of study, you need to purchase a new car. You are looking at a Tesla Model X which is priced at $85000. You are able to make a 5.00% down payment at signing and will finance the remaining balance with a 4 year loan. If the interest rate is 5.25%, what is the monthly payment, assuming you'll make the car payment at the end of every month.

hint:

Loan problems use the present value of an annuity formula. In this case, the present value of the loan is the amount you will finance. Since the car costs $85000 and you will make a 5.00% down payment, the present value of the loan is $80750. Now use the PV of annuity formula to solve for the annuity. Also note that this is a monthly payment so the rate should be divided by 12 and the n should be multiplied by 12.