Excelsior College Compound Interest Calculations You decide to purchase a new car. After you make a down payment for your new car, you need to finance (borrow) $15,000.
1. Comparinginterestratesatvariousfinancialinstitutions,thebestinterestrate that you find is an APR of 4.5% compounded monthly over 48 months. What is your monthly car payment
Howmuchtotalinterestdoyoupayoverthedurationofyour48-monthcarloan?
Whatwouldyourmonthlypaymentbeifyouhada60-monthloanatthesame APR of 4.5% compounded monthly? How much total interest would you pay over the duration of a 72-month car loan
Whatmathematicalconclusionsdoyoumakeabouta48-monthvs.60-monthcar loan
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