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# how to calculate interest

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a car costing 5995. financed at 9% interest for 36 mos will cost what per month?

Guest Mar 14, 2017
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(5995+(5995*9%))/36 = 181.5152777777777777777777777777777777777777777777777777777777777778

OR, in shorter numbers

~$181.52 rarinstraw1195 Mar 14, 2017 #3 +91432 0 Hi Rarinstraw, You have tried to do it on simple interest but your answer is too little becasue you have only charged interest for 1 year, not for three. Melody Mar 14, 2017 #2 +91432 +5 a car costing 5995. financed at 9% reducing interest for 36 mos will cost what per month? C=?? PV=5995 n=36 i=0.09/12 = 0.0075 $$5995=C*\frac{1-1.0075^{-36}}{0.0075}\\ C=5995\div (\frac{1-1.0075^{-36}}{0.0075})$$ 5995/((1-1.0075^-36)/0.0075) =$190.64   per month

Melody  Mar 14, 2017

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