I need all you math geniuses help

[Anonymous]

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

[Anonymous]

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

[momo3fgr8tteens]

What is the interest rate on the loan?

[Anonymous]

about 150$/mo or higher depending on interest

[Anonymous]

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. 

[SadeAyosmom]

how is the interest compounding?

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

[Anonymous - Original Poster]

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

Quoting SadeAyosmom:

how is the interest compounding?

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

[SadeAyosmom]

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

[sbell719]

I work in the loan department at my bank...

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