Molly’s monthly payment by using the Bankrate calculator is $286 per month.
It is given that
The downpayment Molly has = $2500.
Interest rate APR = 1.9%
Cash allowance by dealer = $500
Selling price = $25,495
Loan tenure N= 7 years
Amount of loan needed = 25495-2500-500 = $22495
What is Equated monthly payment(EMI)?
An equated monthly installment (EMI) is a set monthly payment provided by a borrower to a creditor on a set day, each month.
The EMI or monthly payment will be calculated by the following formula,
[tex]EMI = \frac{P.\frac{APR}{12} .(1+\frac{APR}{12})^N }{(1+\frac{APR}{12})^N-1 }[/tex]
Put APR =0.019(decimal value of APR)
N = 7
EMI = $286 per month.
Therefore, Molly’s monthly payment by using the Bankrate calculator is $286 per month.
To get more about EMI visit:
https://brainly.com/question/25658911
