To calculate the monthly payments for a car loan, you can use the formula for the monthly payment of a loan:
`Monthly Payment = P * r * (1 + r)^n / ((1 + r)^n - 1)`
Where:
P = Principal amount (loan amount)
r = Monthly interest rate (annual interest rate / 12)
n = Total number of payments (number of years * 12)
In this case,
Principal amount (P) = $21,899
Annual interest rate = 5.49%
Number of years (n) = 5
First, let's calculate the monthly interest rate (r):
Monthly interest rate (r) = 5.49% / 100 / 12 = 0.004575
Now, let's calculate the total number of payments (n):
Number of years (n) = 5 * 12 = 60
Using these values, we can calculate the monthly payment:
Monthly Payment = $21899 * 0.004575 * (1 + 0.004575)^60 / ((1 + 0.004575)^60 - 1)
Calculating this using a calculator or spreadsheet, the monthly payment comes out to be approximately $411.95.
To calculate the total interest paid over the life of the loan, you can subtract the principal amount from the total amount paid. The total amount paid can be calculated by multiplying the monthly payment by the total number of payments:
Total amount paid = Monthly payment * Total number of payments
Total interest paid = Total amount paid - Principal amount
Total amount paid = $411.95 * 60 = $24,717
Total interest paid = $24,717 - $21,899 = $2,818
Therefore, the monthly payment for the car loan would be approximately $411.95, and the total interest paid over the life of the loan would be approximately $2,818.