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Jaguar bought at 92,000.00 at 1.49 percent interest is how much total if payments are made for 5 years, and how much is saved from 2,49 percent payments

Jaguar bought at 92,000.00 at 1.49 percent interst for 60 months equals what price total, and difference in total for same amount 92,000.00 at 60 months for 2.49 interest. What is the difference in total price for each
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1 Answer

Use the amortization formula to find the monthly payment A first:
A = P * i*(1+i)n/((1+i)n-1)
where i is the interest rate per month, n the number of months, and P the principal. In your case
P=92,000
n=60
i=0.0149 or i=0.0149/12, depending on whether your 1.49% is a monthly or annual interest rate.
If it is a monthly interest rate, these values give A=2,330. Therefore, the total payment over 60 months is
60*2,330=139,810.
If it is an annual interest rate, these values give A=1,592. Therefore, the total payment over 60 months is
60*1,592=95,520.
 
 
Now repeat this with i=0.0249 (or i=0.0249/12) and find the difference.

Comments

If the 1.49% is an annual interest rate, you would set i=0.0149/12 in the formula.

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