I understand we need to calculate monthly payments and thus its the PMT. However I do not understand why we are not calculating and using the EAR but instead we are using the given APR. Please explain. The answer is 592.87

- You are in the process of purchasing a new car that will cost you $27,500. The dealership is offering you either a $2500 rebate (applied toward the purchase price) or 1.9% financing for 48 months (with payments made at the end of the month). You have asked your local bank and have been pre-approved for an auto loan through them at an interest rate of 6.5% APR compounded monthly for 48 months. If you take the $2500 rebate and finance your new car through your local bank, what would be your monthly payments