reynoldsaddison01
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Question:

Antoine Smith wants a new pickup truck listed for $60,800. He Will make a down payment of $30,000 and finance the balance of 4.43% interest for 6 years (72 months). Find the monthly payment using a calculator. Round your answer to the nearest cent.

(I don't have a calculator on me or I could've had this solved but it would be greatly appreciated if you can help. <3 )

Respuesta :

Using simple interest, it is found that his monthly payment is of $541.48.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of money after t years in is modeled by:

[tex]A(t) = A(0)(1 + rt)[/tex]

In which:

  • A(0) is the initial amount.
  • r is the interest rate, as a decimal.

In this problem:

  • The amount financed is of A(0) = $30,800.
  • The interest rate is of r = 0.0443.
  • The time is of t = 6.

Hence, the amount will be of:

[tex]A(t) = A(0)(1 + rt)[/tex]

[tex]A(6) = 30800[1 + 0.0443(6)][/tex]

[tex]A(6) = 38986.64[/tex]

12 x 6 = 72 monthly payments, hence:

38986.64/72 = $541.48.

His monthly payment is of $541.48.

More can be learned about simple interest at https://brainly.com/question/25296782