Monthly Payment for $28,500 Car Loan Over 60 Months | Exam CFA® Level 1 Test Prep

Monthly Payment for a $28,500 Car Loan over 60 Months

Prev Question Next Question

Question

What monthly payment would repay a $28,500 car loan over 60 months, assuming your loan has an interest rate of 3.9% per year, compounded monthly?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D. E.

E

On the BAII Plus, press 60 N, 3.9 divide 12 = I/Y, 28500 PV, 0 FV, CPT PMT. On the HP12C, press 60 n, 3.9 ENTER 12 divide i, 28500 PV, 0 FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the value of P/Y set to 1.