Use the compound interest formula F=P(1+i) n , where F is the future value, P is the principle amount of the loan, i is the monthly interest rate and n is the number of months. Use the summation...

Use the compound interest formula F=P(1+i)ⁿ
, where F is the future value, P is the principle amount of the loan, i is the monthly interest rate and n is the number of months.

Use the summation formula S_n=a(1-rⁿ)/1-r  to determine the monthly payments.

1. Estimate the monthly payments of a loan for a 2016 Ford Mustang GT. The amount borrowed is $33,000 at a 4.5% yearly interest rate compounded monthly for 72 months.