Download Calculate Cost of Auto Loan

Survey
yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project

Document related concepts
no text concepts found
Transcript 
Calculating the Cost of Your Auto Loan
Financial Calculator
Principal Loan Amount (PV), APR=%, Time period=N
Enter those three elements to get monthly payment (PMT)
Monthly payment * Number of payments = Total loan amount
Total loan amount – Principal loan amount = Interest paid
Total loan amount + Down loan amount = Total purchasing cost
Example:
Buy and finance a car for $13,500 with an interest rate (APR) of 7% for 7
years. Assume you’re paying sales tax with cash.
principal or pv = 13,500
i = 7%
n = 6 years or 72 months
PMT = $230.16 per month.
Total Cost: $16,571.52
Total Interest Paid after 6 years: $3,071.52
Formula for monthly payment:
P ( i/12)
(1 – (1 + i/12) –n)
Use an online calculator: kbb.com
http://www.kbb.com/car-loans-and-financing/#calculator
Use financial formula in Excel
Related documents