That’s great to hear you are thinking ahead and budgeting your money. To calculate how much the monthly payment on a $30,000 car loan, apply this formula:
First, calculate the total interest
you will pay throughout this loan. Multiply your loan amount with your interest rate. Put the interest rate into a decimal. For example, 30,000 x 0.08 = 2,400.
Next, take the answer from the equation above and multiply it by the number of years your loan period is. The answer will be the total interest of your loan. For example, 2,400 x 5 = 12,000.
$12,000 is the total interest you will pay throughout your 60-month loan.
Now to calculate your monthly payment you will need to:
Add your total loan amount and total interest together. This is the overall amount you will pay over your loan with interest included. For example, 30,000+12,000 = 42,000
Take the overall total value and divide it by the number of months your loan term is. For example, 42,000/60 = 700.
With a loan amount of $30,000, an interest rate of 8%, and a loan repayment period of 60-months, your monthly payment is around $700.
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