Compare Loan Terms
So you want to finance a car for $4,840. Let's say we offer you a 4.5%
interest rate on a 2-year loan and 6% on a 5-year loan. Enter this info
into the calculator to see your monthly and total cost by loan term.
Financing Amount
$4,840
Interest Rate on 2-Year Loan
$
Interest Rate on 5-Year Loan
$
Solved
Show answers
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Ответ:
- Interest rate on 2years loan term is $435.6
- Interest rate on 5years loan term is $1,452
Explanation:
Using the formula for calculating amount
Amount = Principal + Interest
Simple Interest = Principal × Rate × Time/100
To finance a car for $4,840 at a 4.5% interest rate on a 2-year loan,
Principal = $4,840
Rate = 4.5%
Time = 2years
SI = 4840×4.5×2/100
SI = 43560/100
SI = $435.6
Interest rate on 2years loan term is $435.6
Amount after 2years loan term will give $4840+$435.6
= $5,275.6
Monthly cost = $5,275.76/24
Monthly cost of car = $219.82
b) To finance the same car of $4,840 at a 6% interest rate on a 5-year loan,
SI = 4840×6×5/100
SI = 145200/100
SI = $1,452
Interest rate on 5years loan term is $1,452
Total cost by loan term = $4840+$1452
= $6,292
Monthly cost of car = $6,292/5×12
Monthly cost of car = $104.87
Ответ:
true
explanation: