Financial Planning Cases The Johnsons' Credit Questions They are considering trading their car in for a newer used vehicle so that Harry can have dependable transportation for commuting to work. The couple still owes $5,130 to the credit union for their current car, or $285 per month for the remaining 18 months of the 48- month loan. The trade-in value of this car plus $1,000 that Harry earned from a freelance interior design job should allow the couple to pay off the auto loan and leave $1,250 for a down payment on the newer car. The Johnsons have agreed on a sales price for the newer car of $21,000. (b) Calculate the monthly payment for a loan period of three, four, five, and six years at 6 percent APR. Describe the relationship between the loan period and the payment amount. 5 years 6 years N 3 years 4 years I/Y PV PMT (compute) FV