What is the monthly payment of a car for $6,500 for 4 years, at the rate of 18%. I need the equation too!

Question

wolf1728 · Answer

You can find the formula here: http://www.1728.org/loanform.htm

brunsonni · Answer

I don't use equations to solve percentages, but I got the monthly cost of $1,170, and the 4 year cost of $56,160

wolf1728 · Answer

You'll need the equation.
Monthly Payment = 190.94
Total paid = 9,165.12
I can use the formula and show you.

wolf1728 · Answer

Where did you get your formula?

wolf1728 · Answer

Monthly Payment = [rate + ((rate/((1 + rate)^months)-1)] * principal

wolf1728 · Answer

rate = rate/1200
18 / 1200 = .015

Monthly Payment = [.015 + (((.015/((1.015)^48-1)] * 6,500
Monthly Payment = .015 + [.015 / 2.0434782893 -1] * 6,500
Monthly Payment = (.015 + 0.0143749996) * 6500
Monthly Payment = 0.0293749996 * 6500
Monthly Payment = 190.9374974542

which rounds to 190.94

wolf1728 · Answer

Hello again Petepw, are you going to post your thoughts on this?

anonymous · Answer

is 18 the annual rate, and is it compounded?