I know there are alot of online calculators available, but I need to know how the interest works for car loans ? I am trying to calculate the interest myself without using an online calculator and my monthyly payments.
This may look kind of crazy but it’s correct.
Present Value = Cost [1-1/(1+rate)^time / rate]
20,000 = C [1-1/(1.0058)^60months / .0058
*that .0058 is .07/12
I don’t have a calculator near me right now but if you multiply 1.0058 to the 60th power and sub that answer in and divide the C# by 20,000 you’ll have the answer.
Principle x Rate x Time
20000 x .07 x 5
References :
your monthly paymt will be $396.
References :
Better yet, head over to the finance section of Yahoo and search for the auto loan calculators. This will allow you to play around with prices, down payments and interest rates.
References :
http://autos.yahoo.com/finance/loan-calc/?refsrc=autos/home&refsrc=autos/IY/gen
You can use the pmt() function in Excel. All you have to do is enter the rate (7%), term (84 months), and present value ($20,000), and you have all those. Then you can change those variables to play around with it.
References :
This may look kind of crazy but it’s correct.
Present Value = Cost [1-1/(1+rate)^time / rate]
20,000 = C [1-1/(1.0058)^60months / .0058
*that .0058 is .07/12
I don’t have a calculator near me right now but if you multiply 1.0058 to the 60th power and sub that answer in and divide the C# by 20,000 you’ll have the answer.
References :