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# I need all you math geniuses help

Posted by Anonymous
• 8 Replies
I have a math problem for someone I feel like an idiot but I really need some help.

I want to buy a car. They want 4500 the bank only does 3 year loan max. What would be my payments on a three year loan?

With an interest rate of 5% which is on the high side
Posted by Anonymous on Feb. 7, 2013 at 6:31 AM
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Replies (1-8):
by Anonymous 2 on Feb. 7, 2013 at 6:32 AM
1 mom liked this

Depends on the interest rate. A \$4500 loan is never just a \$4500 loan.

by on Feb. 7, 2013 at 6:32 AM

What is the interest rate on the loan?

by Anonymous 3 on Feb. 7, 2013 at 6:33 AM

about 150\$/mo or higher depending on interest

by Anonymous 2 on Feb. 7, 2013 at 6:33 AM

Before interest, and car insurance (you will be required to get full coverage), it's \$125/month. But, more like \$200-250 with insurance and interest.

by on Feb. 7, 2013 at 7:00 AM

how is the interest compounding?

ask that is very important the interest will be very diff both ways!

by Anonymous 1 - Original Poster on Feb. 7, 2013 at 7:04 AM
Ok I have never taken out a loan so what questions do I need to ask to make sure I'm not being screwed so to speak

how is the interest compounding?

ask that is very important the interest will be very diff both ways!

by on Feb. 7, 2013 at 7:06 AM

principal 4500/3*12=125..

but how is the 5% compounding monthly? quarterly?

monthly 4500*5%=225*36=8100 + 4500=12600

quarterly 4500*5%=225*4*3=2700+4500=7200 total

by on Feb. 7, 2013 at 7:13 AM
I work in the loan department at my bank...

I come up with approximately \$135.00 before you tack on insurance.
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