Title: Monthly Loan Payment
Course: My First Car - Algebra

Monthly Loan Payment

Now calculate the monthly loan payment for each term (3 years, 4 years, and 5 years) using the following formula. You could also use the TI-84 Financial Applications.

m = | A($$ \frac{r}{12} $$)(1+$$ \frac{r}{12} $$)^n _____________________
(1+$$ \frac{r}{12} $$)^n -1

Where m = the monthly payment, A = amount of loan, r = the annual interest rate (expressed as a decimal, and n = the number of months of the loan.

Use the following format:

Monthly Payment for a 3 Year Loan =
Total Interest paid for a 3 Year Loan =

Monthly Payment for a 4 Year Loan =
Total Interest paid for a 4 Year Loan =

Monthly Payment for a 5 Year Loan =
Total Interest paid for a 5 Year Loan =

Monthly Loan Payment