Question 1200532: You want to buy a $13,000 car. The company is offering a 4% interest rate for 36 months (3 years). What will your monthly payments be? Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! loan is for 13,000
interest rate per year compounded monthly = 4% / 12 = .333333333333% per month.
you pay interest on the remaining balance of the loan at the end of each month.
payments are made at the end of each month.
term of the loan is 36 months.
payment is 383.81 at the end of each month.
you can do this yourself, using the calcultor at https://www.algebra.com/tutors/faq.mpl
here are the results from using that calculator.
the present value of the loan is positive, because that's money you received to pay fo the car.
the payments are negative because that's money you spend at the end of every month to pay off the loan.
the interest rate is 4% per year compounded monthly / 12 = .333333333333% per month.
term of the loan is 36 months.
payments are made at the end of each moonth.
