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Question
Hi, I want a car on finance. price is at $29,320.00. my deposit is $9,902.57. interest is 7% over 4 years.

how do i work out monthly repayments?

based on my calculations i get $1359.22.
how much do i owe in year 1, year 2, year 3 and year 4?

i'm confused on this.
please advise.
Thank you.

Answer
Here is the formula for monthly payments:

P(R/12)/(1-(1+R/12)^-m)


P is the principal amount of the loan

R is the interest rate, expressed as a decimal

m is the number of monthly payments


Since you paid 9,902.57 already , your principal P is 29,320 - $9,902.57 = 19,417.43

Interest rate is 7% , so R is .07

Over 4 years , there are 48 months, so m = 48


R/12 = .07/12 = .00583


(1+R/12)^-m = (1.00583)^-48 = .75652



(1-(1+R/12)^-m) = (1-.75652) = .24348


P(R/12) = (19,417.43)(.00583) = 113.20361


so your monthly payment will be


113.20361 /.24348 = $464.94  

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