› CFA › CFA Level 1 › Question of the Week – Quantitative Methods Search for:Search Button CFAFRMCAIACareersLounge GeneralLevel 1Level 2Level 3 Question of the Week – Quantitative Methods Reply Login Sign Up This topic has 2 replies, 2 voices, and was last updated Feb-18 by AdaptPrep. Author Posts AdaptPrepParticipant Sr Associate 27 Jan 2018 at 7:48 pm Up4Down If you were to finance a $25,000 car purchase with a 6 year, 5% compounded monthly loan, your monthly payments will be closest to: $400 $410 $420 mlynch99Participant Summer Associate 03 Feb 2018 at 12:26 pm Up3Down Does anyone know when we get the answer? AdaptPrepParticipant Sr Associate 04 Feb 2018 at 7:04 am Up2Down You can solve this with the TVM function on your calculator. The trick is converting everything to monthly payments: PV: -25,000 I: 5%/12 = 4.167% FV: 0 N: 6 * 12 = 72 Solving for PMT gives you $402.62. Author Posts Viewing 3 posts - 1 through 3 (of 3 total) You must be logged in to reply to this topic. Log In Username: Password: Keep me signed in Register Log In
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