Assume that you make a down payment of $2000, and you finance the remainder with a five-year loan at 6.9 percent APR.
20092 total cost-2000 down payment=18092 interest=2.24$
What is the equation I need to use to figure out the monthly payments per $100?
total loan=$20092
Down=$2000
Amount to finance, A=20092-2000=$18092
term = 5 years
compounded monthly
monthly interest, i= $0.069/12=0.00575
R=1+i=1.00575
number of periods, n = 5*12=60
Monthly payment,
P=AR^n*(R-1)/(R^n-1)
= 18092*(1.00575^60)*(0.00575)/(1.00575^60-1)
=357.39 per month
Well, my friend, let's put on our serious faces for a moment and do some math, shall we?
To calculate the monthly payment per $100 borrowed, we can use the formula:
Monthly Payment = (Loan Amount × Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Months))
In this case, the loan amount is $18,092 (the total cost minus the down payment), the monthly interest rate is the annual percentage rate (APR) divided by 12, and the number of months is 5 years multiplied by 12 (since there are 12 months in a year).
So, let's plug in the numbers and calculate:
Loan Amount = $18,092
Annual Percentage Rate (APR) = 6.9%
Monthly Interest Rate = 6.9% / 12 = 0.575%
Number of Months = 5 years × 12 months/year = 60 months
Monthly Payment per $100 = (Loan Amount × Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Months))
Once you calculate the value, you can multiply it by the number of $100s you borrowed to find the monthly payment. Keep in mind that this equation gives you an estimate, and the actual monthly payment may vary depending on the specific terms of your loan.
And remember, if math gets too confusing, you can always hire a clown mathematician to crunch the numbers for you. Just don't be surprised if the answers come with a hearty chuckle!
To calculate the monthly payments per $100, you need to use the following equation:
Monthly payment per $100 = (Loan amount × Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
Here's how you can apply this equation to your situation:
1. Convert the annual interest rate to a monthly interest rate by dividing it by 12. In this case, the annual interest rate is 6.9%. So, the monthly interest rate would be 6.9% / 12 = 0.00575.
2. Determine the loan amount, which is the total cost of the purchase minus the down payment. In your case, the total cost is $18,092 and the down payment is $2,000. Therefore, the loan amount would be $18,092 - $2,000 = $16,092.
3. Calculate the number of months for the loan. You mentioned that it's a five-year loan, so multiply the number of years by 12 to get the total number of months: 5 years × 12 = 60 months.
4. Substitute the values into the equation to calculate the monthly payment per $100:
Monthly payment per $100 = ($16,092 × 0.00575) / (1 - (1 + 0.00575)^(-60))
By evaluating this equation, you will find the monthly payment amount per $100 financed.
To figure out the monthly payments per $100, you can use the following equation:
Monthly payment = (Loan amount × Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
In this equation:
- Loan amount is the total cost minus the down payment, which in this case is $18,092.
- Monthly interest rate is the annual interest rate divided by 12 and expressed as a decimal. In this case, it would be (6.9% / 100) / 12 = 0.00575.
- Number of months represents the loan duration, which is five years or 60 months in this case.
So, to find the monthly payments per $100, you will substitute Loan amount with $100 in the equation:
Monthly payment = ($100 × 0.00575) / (1 - (1 + 0.00575)^(-60))
Once you calculate this, you will get the monthly payment for $100.