Ms Ling purchases an automobile using loan of $ 44000.00 for 7 yrs with monthly payments. The annual nominal interest rate is 12 % with monthly compounding. What would be the monthly payment.

What is I/Y here?

As effective rate is not given, should we convert it to effective and then use that I/Y for calculation?

in the finance calculator, I/Y is the nominal annual rate of interest, with the default number of compounding being 1.

for this problem, you are paying monthly with monthly compounding. this means that your N must be in months and you need to tell your calculator to compound interests monthly.

in BAII Plus Pro, 2nd -> P/Y -> 12

note that, as is, the problem is ambiguous. you will get different answers depending on whether the payments start immediately (that is, if you calculate as though this was a monthly annuity-due), or if payment starts 1 month from now (that is, if you calculate as though this was a monthly annuity-immediate)