How do I find the monthly car payment of a car that is priced at 2995 and has a down payment of 2138 and has an annual interest rate of 11% and a term of 60 months? Please help!!!

Question

This question is more in the category of financial car payment things. I was also given this formula (p x r) divided by 1- (1/(1+r)^t))

Answer 1

I think the price of the car 2995 is too low for a down payment as high as 2138, so for now I’ll use P to represent the price of the car, then substitute for P later.

Amount left to pay (amount borrowed)=P-2138. The monthly repayment formula should be:

rp/(1-(1/(1+r)^t)) as you have indicated. So p=P-2138, t=60, r=(11/12)/100=11/1200 per month.

Therefore monthly repayment=0.021742(P-2138).

Now we can substitute values for P.

P=2995: 18.63 a month

P=29995: 605.68 a month

P=21995: 431.74 a month

P=21380: 418.37 a month (that is, 10% down payment)