Question

Use your financial calculator to compute the monthly payments for a vehicle that costs $15,000 if you finance the entire purchase over 4 years at an annual interest rate of 6 percent. Also, calculate the loan payments assuming rates of 5 percent and 7 percent. Compare the total amount spent on the vehicle under each assumption.

Answer 1

Total amount spent when rate is 6%
Loan amount			15000
Annuity for 48 periods at 0.50%			42.58032
Monthly Payment			352.28
Multipy: Number of months			48
Total Ammount repaid at 6%			16909.22
Total payment at rate of 5%
Loan amount			15000
Annuity for 48 periods at 0.4167%			43.42261
Monthly Payment			345.44
Multipy: Number of months			48
Total Ammount repaid at 5%			16581.22
Total Amount at rate of 7%
Loan amount			15000
Annuity for 48 periods at 0.5833%			41.76053
Monthly Payment			359.19
Multipy: Number of months			48
Total Ammount repaid at 7%			17241.16