About the monthly loan payments

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Monthly Loan payments: Personal Finance Problem Tim Smith is Shopping for a used car. He found one priced at $5600. The salesman has told Tim that if he can come up with a down payment of $700, the dealer will finance the balance of the price at an annual rate of 9% over 2 years (24 months) ( Hint use four decimal places for the monthly interest rate in all your calculations.)

a. Assuming that Tim accepts the dealer offer, what will his monthly ( end of month) payment amount be? b. Use a financial calculator or spreadsheet to help you figure out what Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 6%?

Reference no: EM131068877

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