Financial Technology Center - School of Business - Central Connecticut State University

You are considering buying a new car.  The sticker price is $15,000 and you have $2,000 to put toward a down payment.  If you can negotiate a nominal annual interest rate of 10 percent and you wish to pay for the car over a 5-year period, what are your monthly car payments?

N = 5*12

I= 10/12

PV = -13000;

FV = 0

 and then solve for PMT = $276.21.