Share
Explore BrainMass

How to Calculate Monthly Car Payment

So you're buying a car.You know that interest today is low. But you found a place where you can earn 1% interest per month. You invest $1000 on the 1st of each month. By the end of the month, that $1000 is now $1010. You keep doing this for 4 months, then take that money to use on a down payment for a car that is $22,323 (incl tax). What is the monthly car payment for this car at 6% annual interest for a 5 year loan?

Solution Preview

After 4 months, you have $1,010 * 4 = $4,040 saved up.
You use $4,040 as a down payment on $22,323: $22,323 - $4,040 = $18,283.
Now you only have to pay monthly payment on $18,283.

Using the TI BA II Plus financial calculator, follow these ...

Solution Summary

This solution is comprised of detailed calculation of the following question using both manual calculation and TI BA II Plus financial calculator. Question: So you're buying a car.You know that interest today is low.Ã? But you found a place where you can earn 1% interest per month.Ã? Ã? You invest $1000 on the 1st of each month.Ã? By the end of the month, that $1000 is now $1010.Ã? You keep doing this for 4 months, then take that money to use on a down payment for a car that is $22,323 (incl tax).Ã? What is the monthly car payment for this car at 6% annual interest for a 5 year loan?

$2.19