So I am doing an assignment, but my numbers aren't adding up. I've been cross checking with an online calculator and it is giving me one answer, while my notes are giving me another.

Price: $55,891.00
Interest Rate: 5.15%
Term: 36 Months (3 years)

I=(55891)(.0515)(3) = 8,635.1595

To find the monthly payment it should be

55,891 + 8,635.1595
-----------------------------
36
= $1792.39

Anyone else getting it differently?
To find the total finance of the purchase it would simply be $8,635.1595 + $55,891.00 (assuming these numbers are correct) = $64,526.16

Please let me know if you have any knowledge on the subject, more than willing to pay with fg for help!

(.0515)(3)

that doesn't look right to me. in your third year, 2/3 of the loan is paid off. why would you pay 5.15% interest on the full principal?

then again, i dont know much about finance.

This post was edited by carteblanche on Mar 23 2015 03:01pm

I see what you mean, but from my notes we did nothing of the sort which leads me to believe that the number I am getting is the correct one. My problem is that
every single online calculator I've used has come out to $1,678.87 for the monthly, which doesn't make sense.

This post was edited by crackils on Mar 23 2015 03:09pm

If it's for class, just follow your notes. it wouldn't surprise me if your class is taking a simplistic approach to it, whereas online calculators are using the correct value. Try putting an example from your notes / book into the online calculator. i bet the online calculator is giving a lower monthly payment than in your notes.

this is what the calculator is doing:

P (r/12)
_________
1 - (1 + r / 12)^-m


55,891 * (0.0515 / 12)
_______________________
1 - (1 + 0.0515 / 12) ^ -36


=1,678.87

if you haven't seen that formula, then don't worry about it. stick to your notes.

Wow! Thank you, I have yet to see this formula that you posted, I will just keep following my notes then!

Thanks again!

When I put it into my calculator I get:

Monthly payment: 1,678.87
Total owed: 60,439.42
Total Interest: 4,548.32


Edit: You should really learn that formula if you haven't already. Especially if you are pursuing a business degree.

This post was edited by 1messdkid on Mar 23 2015 03:48pm

Thanks for the info, but thankfully I am not going into business, just an odd section in the book.