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you are considering buying a car for 1500 you put 3000 down and are thinking about taking out a 60 month loan at 5.5%

User Limeni
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Final answer:

If you take out a $1500 loan with a 60 month term and an interest rate of 5.5%, your monthly payment would be about $28.77.

Step-by-step explanation:

When considering buying a car for $1500 and putting a down payment of $3000, you are left with a loan amount of $1500 - $3000 = -$1500. Since this loan amount is negative, it means that you are actually receiving $1500 as a loan. With a 60 month loan term and an interest rate of 5.5%, we can calculate the monthly payment using the formula for calculating the monthly payment for a loan:

Monthly payment = (Loan amount * interest rate/12) / (1 - (1 + interest rate/12)-number of months)

Plugging in the values, we get:

Monthly payment = (1500 * 0.055/12) / (1 - (1 + 0.055/12)-60)

Calculating this using a calculator or spreadsheet software, the monthly payment comes out to be approximately $28.77.

So, if you take out a $1500 loan with a 60 month term and an interest rate of 5.5%, your monthly payment would be about $28.77.

User TheLV
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