To calculate the monthly payment for a $60,000 car loan with a 6-year term (72 months) at an average car loan interest rate, we need to make some assumptions.
Assumptions: Car price: $60,000 Loan term: 6 years (72 months) Average car loan interest rate: 6% annually (this can vary based on your credit score, lender, and other factors, but 6% is a reasonable average) Monthly Payment Formula:
We can use the formula for a fixed-rate loan:
𝑀 = 𝑃 × 𝑟 × ( 1 + 𝑟 ) 𝑛 ( 1 + 𝑟 ) 𝑛 − 1 M= (1+r) n −1 P×r×(1+r) n
Where: M is the monthly payment
P is the loan principal ($60,000)
r is the monthly interest rate (annual rate divided by 12) = 6% / 12 = 0.005 (0.5%)
n is the number of payments (72 months)
Plugging the values in:
𝑀 = 60 , 000 × 0.005 × ( 1 + 0.005 ) 72 ( 1 + 0.005 ) 72 − 1 M= (1+0.005) 72 −1
60,000×0.005×(1+0.005) 72𝑀 = 60 , 000 × 0.005 × 1.432364654 1.432364654 − 1 M= 1.432364654−1 60,000×0.005×1.432364654
𝑀 = 60 , 000 × 0.00716182327 0.432364654 M= 0.432364654 60,000×0.00716182327𝑀 ≈ 429.7094 0.432364654
M≈ 0.432364654 429.7094𝑀 ≈ 994.42 M≈994.42