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Math Help - Loan Amoritization

  1. #1
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    Loan 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.
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  2. #2
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    Re: Loan Amoritization

    Hello, Eraser147!

    No fancy formulas required . . .


    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 \$20,\!000.

    You pay back \$415.17 per month for 60 months.
    You pay back a total of: 60 \times \$415.17 \:=\:\$24,\!910.20

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

    Thank you, I'm not too good with word problems.
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