Don james purchased a new automobile for $28,000. don made a cash down payment of $7,000 and agreed to pay the remaining balance in 30 monthly installments, beginning one month from the date of purchase. financing is available at a 24% annual interest rate. (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) required: calculate the amount of the required monthly payment.

monthly Payment = $937.65

Explanation:

Given that Don bought a new automobile for $28,000 and that Don made a cash down payment of $7,000 also and agreed to pay the remaining balance in 30 monthly installments .  We know that the Loan Amount = 28,000 - 7,000 = $21,000  . Now we need to calculating Monthly Payment on Loan by Using TVM Calculation,

We have

PMT = [PV = 21,000, FV = 0, N = 30, I = 0.24/12]

PMT = $937.65

Therefore, the monthly Payment = $937.65