Monthly Payment for $17,500 Car Loan over 48 Months | CFA Level 1 Exam Preparation

Calculate Monthly Payment for $17,500 Car Loan with 4.9% Interest Rate

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Question

What monthly payment, beginning next month, would repay a $17,500 car loan over 48 months, assuming your loan has an interest rate of 4.9% per year, compounded monthly?

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D

On the BAII Plus, press 48 N, 4.9 divide 12 = I/Y, 17500 PV, 0 FV, CPT PMT. On the HP12C, press 48 n, 4.9 ENTER 12 divide i, 17500 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.