Final answer:
The monthly payment on the car loan is $336.41. The total cost of the car is $45,479.12. The interest paid will be $24,231.12.
Step-by-step explanation:
To calculate the monthly payment on the car loan, we need to determine the principal amount of the loan, the interest rate, and the loan term. The down payment is 17% of the price of the car, so the principal amount of the loan is $25,600.00 - 0.17 * $25,600.00. The interest rate is 1.75% per year, which is 0.0175 per month. The loan term is 72 months.
Using the formula for calculating the monthly payment on an amortized loan, the monthly payment can be calculated as follows:
Monthly interest rate = 0.0175 / 12 = 0.0014583
Number of months = 72
Principal amount of loan = $25,600.00 - 0.17 * $25,600.00 = $25,600.00 - $4,352.00 = $21,248.00
Monthly payment = (0.0014583 * $21,248.00) / (1 - (1 + 0.0014583) ^ -72) = $336.41
The total cost of the car is the principal amount of the loan plus the interest paid over the loan term. It can be calculated as follows:
Total cost of car = $21,248.00 + (72 * $336.41) = $21,248.00 + $24,231.12 = $45,479.12
The interest paid over the loan term is the total cost of the car minus the principal amount of the loan. It can be calculated as follows:
Interest paid = $45,479.12 - $21,248.00 = $24,231.12
If payments are made once every 2 weeks, the number of payments in a year is 26. The monthly interest rate and the number of months remain the same. The principal amount of the loan can be recalculated by subtracting the down payment percentage from the price of the car. Using the formula for calculating the monthly payment on an amortized loan, the monthly payment can be recalculated.