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How Much Will The Payments Be On A Car Loan Of $23,000 At A 9.99% Rate For 5 Years? How Do You Figure It Out?

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3 Answers

Sophie Carroll Profile
Sophie Carroll answered

I would advise you to try to find a loan software so that it manually calculates such formulas.

Sergio Jemas Profile
Sergio Jemas answered

We are lucky that in 2022 there are services that provide excellent loan software. My firm works with https://neo-fin.com/loan-origination-software/, I advise you to check their site and learn more about this service. The loan software has been specifically designed to meet the needs of lenders in servicing loans. Ideal for mortgage lenders and consumer loan lenders.

jay jerome Profile
jay jerome answered

Use the payment formula.

Pmt = L [ r ( 1 + r ) ^ n ] / [ (( 1 + r ) n) -1 ]

L = $23,000
r = 0.0999 /12
n = 60

Make the necessary substitutions and you will get the following:

Pmt = $488.57 for 59 months
  = $488.50 for 1 month (last payment)

Total payments: $29,314.13
Total finance charges: $6,314.13

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