Question 2
You want to buy a $\$ 24,000$ car. The company is offering a $3 \%$ interest rate for 36 months ( 3 years). What will your monthly payments be?
Answer
\(\boxed{697.95}\) is the final answer, which means the monthly payment will be approximately $697.95.
Step 1 ：We are given a car loan of $24,000 with an interest rate of 3% per annum for a period of 3 years. We are asked to find the monthly payments.
Step 2 ：We can use the formula for the monthly payment of a loan: \[M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1}\] where: M is the monthly payment, P is the principal loan amount, r is the monthly interest rate (annual interest rate divided by 12), and n is the number of payments (the number of months in the loan term).
Step 3 ：Substituting the given values into the formula, we get P = $24,000, r = 3% / 12 = 0.0025, and n = 36.
Step 4 ：Calculating the above expression, we find that the monthly payment M is approximately $697.95.
Step 5 ：\(\boxed{697.95}\) is the final answer, which means the monthly payment will be approximately $697.95.
