Enter the loan term in months in cell E3. I is the interest cost P is principal or the original amount borrowed R is the rate of interest expressed as a decimal T is term or length of the loan. Auto loans are a type of installment loan that split a car purchase into monthly payments over a period of years which can make a new or used car more affordable.
15000 007 12 ------------------------------ -36 1 - 1 007 12 The payment for this car will be 46316 per month.
Lets say you are shopping for a mortgage and want to know what your prospective monthly payment would be. Although not the only thing interest rates are very much the most important thing that affects how much you pay on a car loan besides the cost of the car itself. EMI P r 1r n 1r n 1 Where EMI Equated Monthly Installment P Loan Amount - Down payment r Annual Interest rate 1200 n Term Period or noof year or months for loan repayment Auto loan EMI and interest rate calculations for car and other vehicles are made easier. A Total loan amount D 1 r n - 1 r 1 r n Periodic Interest Rate r Annual rate converted to decimal figure divided by number of payment periods Number of Periodic Payments n Payments per year.