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I want to borrow $20,000 to purchase a car. The loan will be a 6 year...

I want to borrow $20,000 to purchase a car. The loan will be a 6 year loan with an APR of 6%. What will be my monthly payment?

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Answer #1

Loan Amount = $20,000

Calculating the Monthly Mortgage Payments:-

Where, P = Loan amount = $20,000

r = Periodic Interest rate = 6%/12 = 0.5%

n= no of periods = 6 years*12 = 72

Monthly Mortgage Payment = $331.46

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