$10,886.29 amortized over 5 years at fixed 3.9%, what is the interests? How to...

[YINGWA]

Same interest, $1112.97? How did you calculate?? Formulas?

CAR not house?

CAR finance is FLAT rate, not amortization.

Let C be your capital
I be Interest rate in percentage
N be number of Years, (i.e. 12 N months)

In your case,
P = $10,886.29
I = 3.9
N = 5

Since it is FLAT rate,
hence total interest you have to pay is P * I * N = 2122.82655

Total money you have to pay in 5 years = P + 2122.82655
= 10886.29 + 2122.82655
= 13009.11655

Each month you have to pay: 13009.11655/ 5 * 12 = 216.82

 

[4Sale]

Thanks so much, this is great!

On the other hand, I am so pissed that I just know that now...

CAR not house?



CAR finance is FLAT rate, not amortization.



Let C be your capital

I be Interest rate in percentage

N be number of Years, (i.e. 12 N months)



In your case,

P = $10,886.29

I = 3.9

N = 5



Since it is FLAT rate,

hence total interest you have to pay is P * I * N = 2122.82655



Total money you have to pay in 5 years = P + 2122.82655

= 10886.29 + 2122.82655

= 13009.11655



Each month you have to pay: 13009.11655/ 5 * 12 = 216.82

 

[4Sale]

But how come I didn't know this before... shouldn't the dealership inform me of this??

 

[uglyducking]

But how come I didn't know this before... shouldn't the dealership inform me of this??

Because you didn't do enough home work?

 

[4Sale]

I guess not...



Where can we learn these things...

Because you didn't do enough home work?

 

[4Sale]

Thanks

But they use the word 'amortization period of 60 months', this is definitely misleading...

Of course CFC forum.



I wrote something similar before...

(I am not a car sales person, but a car owner since 1992).



When you used the word Amortization, then I immediately think you thought it is similar to HOUSE mortgage.



Car dealers all use the word FINANCE in their advertisement.



You will buy/lease cars in future, you now know how to calculate.



You need a financial calculator to calculate amortization, and I don't think not many car sales persons are good in mathematics. Hence don't expect them to explain to you how to calculate.



Anyway, you now own a car that you like, then enjoy driving the car,

 

[狗狗妈]

Mortgage payments: $200.28 a month
Mortgage balance: $0.00 at end of term

Number of payments: 60 at end of term (12 payments per year)
Total payments: $12,016.64 at end of term (over 5 years years)
Total interest $1,130.35 at end of term (based on 3.990%)

Number of payments: 60 over amortization (12 payments per year)
Total payment: $12,016.64 over amortization (5 years)
Total interest: $1,130.35 over amortization (based on 3.990%)
You will have 59 payments of $200.28 a month for 5 years, plus one final payment of $200.12 to payout a $10,886.29 loan with a rate of 3.99%.
Mortgage balance remaining at end of term is $0.00.
By switching your payment schedule from monthly to weekly or biweekly you are able to shorten the mortgage amortization period and save a substantial amount on interest payments.