Final answer:
The monthly payment for a car loan of $14,800 at 6.6% interest with a loan period of 5 years can be calculated using the amortization formula. By inserting the loan amount, monthly interest rate, and total number of payments into the formula, one can determine the monthly payment due.
Step-by-step explanation:
Calculation of Monthly Car Loan Payment
To solve the mathematical problem completely and find out what the monthly payment is for a $14,800 car loan at 6.6% interest with a loan period of 5 years, we will use the formula for calculating the installment payment for an amortizing loan, which is often used in finance.
The formula is:
\[M = P \frac{r(1+r)^n}{(1+r)^n - 1}\]
Where:
- M is the total monthly payment
- P is the principal loan amount ($14,800)
- r is the monthly interest rate (6.6% per year or 0.066 annually, which is 0.066/12 per month)
- n is the number of payments (5 years times 12 months/year = 60 payments)
First, let's calculate r and n:
r = 0.066 / 12 = 0.0055 (monthly interest rate)
n = 5 * 12 = 60 (total number of monthly payments)
Now we can compute the monthly payment M:
M = $14,800 * \frac{0.0055(1+0.0055)^60}{(1+0.0055)^60 - 1}
Plug in the values and solve for M to get the monthly payment. Please note that to get the precise monthly payment amount, you might need to use a financial calculator or software that can handle such calculations.
The provided calculation should give you the theoretical monthly payment, but actual payments could be slightly different due to rounding and other variables the bank may include.