Given:
Loan Amount: $17,235
Loan Terms: 36 months = n
Interest Rate: 2.65% =
Monthly Loan Payment Formula:
Monthly Loan Payment =
Substitute given values into Monthly Payment Formula:
Monthly Loan Payment =
Monthly Loan Payment = $498.56 ( rounded to two decimal places)
Notes:
Total Cost = Monthly Loan Payment * Number of Payments
Total Cost = $498.56 * 36 = $17,948.16
Interest Cost = Total Cost – Loan Amount
Interest Cost = $17,948.16 – $17,235 = $713.16
Loan Amount: $17,235
Loan Terms: 36 months = n
Interest Rate: 2.65% =
2.65/100
= 0.0265 = r (convert percent to a decimal)Monthly Loan Payment Formula:
Monthly Loan Payment =
Loan Amount *
r
/
12
/
1 – ( 1+ r/12
) -n
Substitute given values into Monthly Payment Formula:
Monthly Loan Payment =
17,235 *
0.0265
/
12
/
1 – ( 1+ 0.0265/12
) -36
Monthly Loan Payment = $498.56 ( rounded to two decimal places)
Notes:
Total Cost = Monthly Loan Payment * Number of Payments
Total Cost = $498.56 * 36 = $17,948.16
Interest Cost = Total Cost – Loan Amount
Interest Cost = $17,948.16 – $17,235 = $713.16
