Answer:
The monthly loan payment is:
= $531.18
Step-by-step explanation:
a) Data and Calculations:
Cost of a car financed by a local bank = $25,000
Period of loan = 5 years (60 months)
Interest rate = 10%
The monthly loan payment is calculated from an online financial calculator:
Auto Price 25000
Loan Term 60 months
Interest Rate 10
Down Payment 0
Monthly Pay: $531.18
Total Loan Amount $25,000.00
Upfront Payment $0.00
Total of 60 Loan Payments
$31,870.57
Total Loan Interest $6,870.57
Total Cost (price, interest, tax, fees) $31,870.57