Payment will increase by constant dollar amount

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A college student is buying a new car, which costs $18,000 plus 7% sales tax. The title, license, and registration fees are $600. The dealer offers her a financing program that starts with a monthly payment of $300, and each successive payment will increase by a constant dollar amount y. the dealer offers to finance 80% of the car’s price for 48 months at a nominal interest rate of 12% per year, compounded monthly. (a) How much is the constant amount y? (b) How much is the 48th payment?

Reference no: EM131094619

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