Loan | Calculate Car

Banks provide an annual rate, but since Maya pays every month, she needs the . Formula : Calculation : , which is 0.0050.005 as a decimal. Step 3: Apply the Amortization Formula To find the exact monthly payment ( ), Maya uses the standard loan formula:

Maya had finally saved up for her dream commuter car, a reliable pre-owned sedan priced at . She had $4,000 in her savings account for a down payment, but she needed a loan for the rest. After visiting her local credit union, she was approved for a 5-year (60-month) loan at an annual interest rate (APR) of 6% . calculate car loan

Over the course of 5 years, she will pay a total of ( Banks provide an annual rate, but since Maya

M=Pr(1+r)n(1+r)n−1cap M equals cap P the fraction with numerator r open paren 1 plus r close paren to the n-th power and denominator open paren 1 plus r close paren to the n-th power minus 1 end-fraction (Principal) (Monthly Interest Rate) (Total number of months) Calculate : Multiply by : Divide by : Final Multiplier : The Result Maya’s monthly payment will be $347.98 . She had $4,000 in her savings account for