[bmcdonald]

You have found a clean usaed car that cost you 8,500 you can finance your purchase at an annual rate of 12% for 24 months the dealer requires a down payment of 2,000.
A what will be the amount of your monthly payments
B How much will you pay the dealer over the life time of the loan.
C How much of the amount will be interest.
D If you decide to pay off the loan at the end of the first year, how much will tou owe the dealer.

[rehmanvohra]

A what will be the amount of your monthly payments
Amount payable = Monthly payments x PV factor
(8500-2000) = Monthly payments x PV of ordinary annuity @ 1% per month
8,500 = Monthly payments x 21.2434
Monthly payments = 305.98 rounded to 306
B How much will you pay the dealer over the life time of the loan.
2,000 + (306 x 24) = 9,344
C How much of the amount will be interest.
9.344 - 8,500 = 844
D If you decide to pay off the loan at the end of the first year, how much will you owe the dealer.
This requires preparation of an amortization schedule for 12 months. This space is not sufficient. I think this portion can be done by you.