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