SOLUTION: Suppose you purchase a car for a total price of $35,290.00 including taxes and license fee, and finance that amount for 4 years at an annual interest rate of 7%.Find the monthly pa

Question 1158369: Suppose you purchase a car for a total price of $35,290.00 including taxes and license fee, and finance that amount for 4 years at an annual interest rate of 7%.Find the monthly payment, and what is the total amount of interest paid over the term of the loan?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
using the financial calculator at https://arachnoid.com/finance/index.html, i get the following:

inputs are:
present value = 35,290
future value = 0
number of time periods = 4 years * 12 = 48 months
interest rate per time period = 7% per year / 12 = .58333333....% per month
payments are made at the end of each month.

the calculator tells me that the monthly payment needs to be 845.06, rounded to the nearest penny.

the total payments are 58 * that = 40,562.88.
the loan amount is 35,290.
the total interest paid is the total payments minus the loan amount = 5,272.88.

here's a display of the calculator inputs and results.

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