How do I calculate the interest that I would have to pay over the life of a loan if I take out a 5 year 20000 dollar car loan at 9% a year? I know that I pay monthly at the rate of $415.17.

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- Mar 11th 2013, 11:36 AMEraser147Loan Amoritization
How do I calculate the interest that I would have to pay over the life of a loan if I take out a 5 year 20000 dollar car loan at 9% a year? I know that I pay monthly at the rate of $415.17.

- Mar 11th 2013, 03:48 PMSorobanRe: Loan Amoritization
Hello, Eraser147!

No fancy formulas required . . .

Quote:

How do I calculate the interest that I would have to pay over the life of a loan

if I take out a 5-year $20,000 car loan at 9% a year? .I pay $415.17 monthly.

You borrowed $\displaystyle \$20,\!000.$

You pay back $\displaystyle \$415.17$ per month for $\displaystyle 60$ months.

You pay back a total of: $\displaystyle 60 \times \$415.17 \:=\:\$24,\!910.20$

Therefore, the interest is: $\displaystyle \$24,\!910.20 - 20,\!000 \:=\:\$4,\!910.20$

- Mar 11th 2013, 04:04 PMEraser147Re: Loan Amoritization
Thank you, I'm not too good with word problems.