Posted by Liala on Friday, December 7, 2012 at 7:16am.
after 5% down payment you would owe 11965.25
249.34 times 60 = 14960.40
interest paid = 14960.40 - 11965.25 = $2995.15
(I hope they don't teach you that you can now find the rate of interest to be 2995.15/(11965.15(5)) = .05 or 5% ????)
the actual monthly rate of interest:
let it be i
11965.25 = 249.34( 1 - (1+i)^-60)/i
running it through a good "equation solver" program , I got i = .0076378
the annual rate is .0916 or 9.16%
check:
249.34( 1 - 1.0076378^-60)/.0076378 = 11965.24 , wow, not bad
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