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# I bought a car for 92,000.00. What would be the total price of it with 2.49 financing per year and the payments?

A 92,000.00 Jaguar at 2.49 percent interest, on a 5 year plan. What would be total cost and payments monthly?

### 2 Answers by Expert Tutors

Andre W. | Friendly tutor for ALL math and physics coursesFriendly tutor for ALL math and physics ...
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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=0.0249

These values give a monthly payment of A=1,632.

Therefore, the total payment over 60 months is
60*1,632=97,941.

Note: The amortization formula is also known as the annuity formula, because it works for an annuity (where you receive monthly payments) the same way it works for a loan (where you make monthly payments).
Sophia Y. | GED, Basic Math, Algebra, English and Language ArtsGED, Basic Math, Algebra, English and La...
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Is the interest charged yearly: 2.49% for every 12 months, or is the 2.49% for every monthly payment along with the \$92,000? If you want to know how much the interest, payments, and total cost, it will go as follows: I=PRT (interest=principal x rate x time)

I=92,000 x .024 x 5