To find the monthly payment for a $15,540 car loan with a 6% APR over 13 years, you would use the formula for an installment loan and input the appropriate values to arrive at a monthly payment of approximately $132.15.
To calculate your monthly payment for a car loan of $15,540 with an annual percentage rate (APR) of 6% over a period of 13 years, we can use the formula for the monthly payment of an installment loan:
P = L[i(1 + i)ⁿ] / [(1 + i)ⁿ – 1]
Where:
- P is the monthly payment
- L is the loan amount ($15,540)
- i is the monthly interest rate (APR divided by 12 months)
- n is the number of payments (13 years times 12 months per year)
First, convert the APR to a monthly interest rate by dividing by 12.
In this case, it's 6%/12, or 0.005 (0.5%). Then, multiply the number of years (13) by 12 to get the total number of monthly payments (156).
Using the values:
L = $15,540
i = 0.005
n = 156
Now, plug these values into the monthly payment formula to get the monthly payment amount. After calculating, you get a monthly payment of approximately $132.15.