Respuesta :
Based on the calculation done below, the payment on the 72-month car loan is $331.36 monthly.
How do we calculate the monthly loan payment?
The monthly payment of the car loan can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
M = PV / ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)
Where;
M = Monthly payment = ?
PV = Present value or the car loan = $20,000
r = Monthly interest rate = Annual interest rate / 12 = 5.99% / 12 = 0.059 /
12 = 0.00491666666666667
n = number of months = 72
Substitute the values into equation (1), we have:
M = $20,000 / ((1 - (1 / (1 + 0.00491666666666667))^72) / 0.00491666666666667)
M = $331.36
Learn more about the present value of an ordinary annuity here: https://brainly.com/question/1569963.
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