How is the interest calculated in a car loan? - car loan calculator
I'm trying to understand what the formula used for calculating the interest rate car loan is. I was what I use = PRT, but it shows the kind of car loan calculator. My supervisor is $ 23,996.16, interest 2.9% and the time is 60 months to 5 years. The Auto Loan Calculator provides a $ 430.11 monthly payment. But when applying the formula and do manually, I get $ 539.713/month.
That's how I do. I = ((23,996.16 $ x (2.9/100)) x (12/60)) = $ 139.777/month of interest. $ 23,996.16 / 60 months = $ 399.96
$ 139.77 + $ 399.96 = $ 539,713.
What am I doing wrong? Please help.
Sincerely, Peter T
Tuesday, January 12, 2010
Car Loan Calculator How Is The Interest Calculated In A Car Loan?
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1 comments:
Its formula is flawed because it does not take into account the principle of reduction of each month instead. April 2.9% interest rate on the monthly data.
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