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?

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