Muriel will pay the Volkswagen dealer a total of $14,136 to be paid in 60 equal montly installments. What is her monthly bill?


From the point of view of the lender, this is an annuity. The formula for the payment on an annuity is:

`"PMT"="PV"((i/n)/(1-(1+i/n)^(-nt)))` where PMT is the payment, PV is the present value of the loan/annuity, i is the interest rate, n is the number of payments per time period t.

You did not give the interest rate to be paid, so here are a couple of examples. You can put the interest rate in to get your answer:

(a) If the interest is 3% annual interest


(b) If the interest is 5% annual interest


(c) If the interest rate is 7% annual interest


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