Problem
6.) You buy a car for $\$ 12,000$ on a simple interest loan at a rate of $6 \%$ for 5 years. You will be financing the amount of car and interest. What is your monthly payment? Round to the nearest cent. Answer: 7.) What is the total amount in an investment of $\$ 3500$ that was compounded quarterly for 8 years at a rate of $5 \%$ ? Round to the nearest cent. Answer: 8.) What is the interest that was made on that account mentioned in \#7? Round to nearest cent. Answer: 9.) A stereo is normally $\$ 540$, and today is on sale for $25 \%$ off. How much do you save by buying it today? Round to the nearest cent.
Solution
Step 1 ：Calculate the monthly payment for a simple interest loan using the formula \( \text{PMT} = \frac{P \cdot r \cdot t}{n} + \frac{P}{n} \)
Step 2 ：Substitute the given values into the formula: \( P = 12000 \), \( r = 0.06 \), \( t = 5 \), \( n = 12 \)
Step 3 ：Calculate the monthly payment: \( \text{PMT} = \frac{12000 \cdot 0.06 \cdot 5}{12} + \frac{12000}{12} \)
Step 4 ：Simplify the calculation to find the monthly payment: \( \text{PMT} = 1300.0 \)
Step 5 ：\( \boxed{1300.0} \)
