Example 1

Micah purchased a new car from Cars Direct. He purchased the car with a car loan for $25,000 with an interest rate of 6.5% compounded quarterly, no payments for the first 6 months. How much will Micah have paid for the car if he pays the balance off at the end of five years? If Micah makes a monthly payment of $575.17 will he pay off the balance in 5 years?
This applet is provided by Walch Education as supplemental material for their mathematics programs. Visit www.walch.com for more information.