asked 199k views
5 votes
Max is taking out a 5.1% loan in order to purchase a $14,000 car. the length of the loan is five years. a.) what is max's monthly payment? b.) how much will he pay in interest?

asked
User Didi
by
8.1k points

1 Answer

5 votes

Final answer:

Max's monthly payment and total interest paid on a $14,000 car loan at 5.1% interest over five years can be determined by using an amortization formula, which takes into account the loan amount, interest rate, and loan term.

Step-by-step explanation:

To calculate Max's monthly payment for a $14,000 car loan at a 5.1% interest rate over five years, you can use the amortization formula or a financial calculator. The calculation will consider the principal amount, interest rate, and the length of the loan to find the monthly payment and total interest paid over the life of the loan.

Similarly, to find the total amount paid in interest over the five years, you will need to multiply the monthly payment by the number of payments (60 months) and subtract the original loan amount from the total amount paid.

answered
User Ziima
by
7.6k points
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