question 39

Tayah is considering buying a new car for which she will need to borrow $23,700. But first, as she learned in FI 3300, Tayah wants to know how much she will have to pay per month on the dealership loan. The loan that Tayah is being offered has a five- year term, requires monthly payments, and has an interest rate of 2.8% p.a. What is the required monthly payment on this loan, assuming that the first payment will be made exactly one month from today