monthly payments

Question

If I bought a car for 24,500 with an interest rate of 7% and had 4 years to pay it off How much would the monthly payment be?

Answer 1

Calculate using the following formula:


Principal (P)
Interest Rate (r)
Number of monthly payments (m)

P ( r / 12 )
-------------------------

(1 - ( 1 + r / 12 )^-m )



24,500 (0.07 / 12)
------------------------
(1-(1+0.07/12)^-48)


$ 586.68 per month