Calculate Car Loan ⟶

Maya had finally saved up for her dream commuter car, a reliable pre-owned sedan priced at . She had $4,000 in her savings account for a down payment, but she needed a loan for the rest. After visiting her local credit union, she was approved for a 5-year (60-month) loan at an annual interest rate (APR) of 6% .

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Maya subtracts her down payment from the car's price to find out how much she actually needs to borrow. : Calculation : Step 2: Convert the Interest Rate Maya had finally saved up for her dream

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). By subtracting her original $18,000 loan, she realizes she is paying to the bank for the privilege of borrowing the money. ✅ Answer

M=Pr(1+r)n(1+r)n−1cap M equals cap P the fraction with numerator r open paren 1 plus r close paren to the n-th power and denominator open paren 1 plus r close paren to the n-th power minus 1 end-fraction (Principal) (Monthly Interest Rate) (Total number of months) Calculate : Multiply by : Divide by : Final Multiplier : The Result Maya’s monthly payment will be $347.98 .