## Math Problem Statement

Philip buys a new car at the price of $32500, where he makes 20% down payment and finances the remaining balance at the interest rate of 6% compounded monthly. The loan will be amortized (paid back) with 48 monthly payments. How much does Philip have to pay back each month?

## Solution

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## Math Problem Analysis

### Mathematical Concepts

Financial Mathematics

Loan Amortization

Compound Interest

### Formulas

Monthly Payment Formula for Amortized Loan: M = (P * r * (1 + r)^n) / ((1 + r)^n - 1)

Compound Interest Rate Calculation: r = annual interest rate / 12

### Theorems

Amortization Formula

### Suitable Grade Level

Grades 11-12

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