For an loan at 6% interest over 60 months , Maya's monthly car payment is $347.98 .
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Maya subtracts her down payment from the car's price to find out how much she actually needs to borrow. : Calculation : Step 2: Convert the Interest Rate For an loan at 6% interest over 60
Banks provide an annual rate, but since Maya pays every month, she needs the . Formula : Calculation : , which is 0.0050.005 as a decimal. Step 3: Apply the Amortization Formula To find the exact monthly payment ( ), Maya uses the standard loan formula: but since Maya pays every month
Over the course of 5 years, she will pay a total of (