Car Loan — Calculate

Before signing the papers, Maya wanted to know exactly what her monthly "rent" for that money would be. Step 1: Determine the Loan Amount (Principal)

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 . calculate car loan

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: Before signing the papers, Maya wanted to know

For an loan at 6% interest over 60 months , Maya's monthly car payment is $347.98 . Formula : Calculation : , which is 0

). By subtracting her original $18,000 loan, she realizes she is paying to the bank for the privilege of borrowing the money. ✅ Answer

Maya subtracts her down payment from the car's price to find out how much she actually needs to borrow. : Calculation : Step 2: Convert the Interest Rate

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