Answer:
a) $225.29
Step-by-step explanation:
We are given
Adan has decided to purchase an $9000 car
he plans on putting 20% down toward the purchase
so,
loan amount = 80% of 9000
[tex]P=7200[/tex]
financing the rest at 7.9% interest rate for 3 years
so,
r=7.9%=0.079
now, we can find i
[tex]i=\frac{0.079}{12}[/tex]
i=0.00658
t=3
[tex]n=12\times 3=36[/tex]
we can use formula
[tex]PMI=P\frac{i(1+i)^n}{(1+i)^n-1}[/tex]
now, we can plug values
[tex]PMI=7200\frac{0.00658(1+0.00658)^{36}}{(1+0.00658)^{36}-1}[/tex]
now, we can simplify it
[tex]PMI=225.2765[/tex]
So,
His monthly payment is $225.2765
