You are considering purchasing a new truck that will cost you $34,000.The dealer offers you 1.9% APR financing for 48 months (with payments made at the end of the month).Assuming you finance the entire $34,000 and finance through the dealer,your monthly payments will be closest to:
A) $708
B) $594
C) $736
D) $1,086

Question

Quizplus · Accepted Answer

C) First we need the monthly interest rate = APR / k = .019 / 12 = .001583 or .1583%.
Now:
PV = 34,000
I = .1583
FV = 0
N = 48
Compute PMT = $736.15

You Are Considering Purchasing a New Truck That Will Cost