You borrow 16000 for 4 years at 7% towards the purchase of a car. What are the monthly payments and total interest for the loan?
Your monthly payment will be=$383.14
Total interest paid will be =$2,390.72
Here is the formula used to calculate this:
PMT=PV. R.{[1 + R]^N/ [1 + R]^N - 1}=PMT NEEDED TO PAY OFF A LOAN OF $16,000,
Where R=Interest rate per period, N=number of periods, P=periodic payment. PV=Present value
