You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 10% with interest paid monthly. What will be the monthly loan payment

The monthly loan payment is:

= $531.18

Explanation:

a) Data and Calculations:

Cost of a car financed by a local bank = $25,000

Period of loan = 5 years (60 months)

Interest rate = 10%

The monthly loan payment is calculated from an online financial calculator:

Auto Price  25000

Loan Term  60 months

Interest Rate  10

Down Payment  0

Monthly Pay:   $531.18

Total Loan Amount$25,000.00

Upfront Payment$0.00

Total of 60 Loan Payments  

$31,870.57

Total Loan Interest$6,870.57

Total Cost (price, interest, tax, fees)$31,870.57

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.