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.
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 $\displaystyle \$20,\!000.$
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: $\displaystyle \$24,\!910.20 - 20,\!000 \:=\:\$4,\!910.20$