Fred is interested in buying a car which costs $21,000. The dealer tells Fred that if he pays $2,000 in cash up front, the dealer will finance the rest of the purchase price (so a $19,000 loan). The dealer says he’ll charge a 3.25% interest rate, payable monthly, for a loan due in three years. What is the monthly payment Fred will be paying if he elects to accept this financing from the dealer?
CALCULATE AND SHOW WORK USING VALUES ENTERED INTO A FINANCIAL CALCULATOR.