Auto Loan worksheet

1. Monthly payment: $665.11

1. Find the sales tax. Here it's charged on the price minus your trade-in value

   $\left(\mathrm{\$45,000.00}-\mathrm{\$5,250.00}\right)\times \mathrm{7\%}$$=\mathrm{\$2,782.50}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$5,250.00}-\mathrm{\$1,600.00}$$=\mathrm{\$3,650.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$45,000.00}-\mathrm{\$4,500.00}-\mathrm{\$3,650.00}+\mathrm{\$2,782.50}+\mathrm{\$500.00}$$=\mathrm{\$40,132.50}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.06}{12}$$=0.005$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 72 months

   $\frac{\mathrm{\$40,132.50}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-72}}}$$=\mathrm{\$665.11}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$665.11}\times 72-\mathrm{\$40,132.50}$$=\mathrm{\$7,755.52}$

2. Monthly payment: $616.47

1. Find the sales tax. Here it's charged on the full price of the car

   $\mathrm{\$42,000.00}\times \mathrm{9\%}$$=\mathrm{\$3,780.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$5,500.00}-\mathrm{\$1,300.00}$$=\mathrm{\$4,200.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity (you pay tax and fees up front)

   $\mathrm{\$42,000.00}-\mathrm{\$3,600.00}-\mathrm{\$4,200.00}$$=\mathrm{\$34,200.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.09}{12}$$=0.0075$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 72 months

   $\frac{\mathrm{\$34,200.00}\times 0.0075}{1-{\left(1+0.0075\right)}^{\mathrm{-72}}}$$=\mathrm{\$616.47}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$616.47}\times 72-\mathrm{\$34,200.00}$$=\mathrm{\$10,186.08}$

3. Monthly payment: $613.69

1. Find the sales tax. Here it's charged on the full price of the car

   $\mathrm{\$38,000.00}\times \mathrm{8\%}$$=\mathrm{\$3,040.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$7,400.00}-\mathrm{\$1,600.00}$$=\mathrm{\$5,800.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$38,000.00}-\mathrm{\$4,500.00}-\mathrm{\$5,800.00}+\mathrm{\$3,040.00}+\mathrm{\$700.00}$$=\mathrm{\$31,440.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.064}{12}$$=0.00533333$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 60 months

   $\frac{\mathrm{\$31,440.00}\times 0.00533333}{1-{\left(1+0.00533333\right)}^{\mathrm{-60}}}$$=\mathrm{\$613.69}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$613.69}\times 60-\mathrm{\$31,440.00}$$=\mathrm{\$5,381.29}$

4. Monthly payment: $462.37

1. Find the sales tax. Here it's charged on the price minus your trade-in value

   $\left(\mathrm{\$20,000.00}-\mathrm{\$6,000.00}\right)\times \mathrm{6\%}$$=\mathrm{\$840.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$6,000.00}-\mathrm{\$3,050.00}$$=\mathrm{\$2,950.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$20,000.00}-\mathrm{\$4,000.00}-\mathrm{\$2,950.00}+\mathrm{\$840.00}+\mathrm{\$650.00}$$=\mathrm{\$14,540.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.09}{12}$$=0.0075$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 36 months

   $\frac{\mathrm{\$14,540.00}\times 0.0075}{1-{\left(1+0.0075\right)}^{\mathrm{-36}}}$$=\mathrm{\$462.37}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$462.37}\times 36-\mathrm{\$14,540.00}$$=\mathrm{\$2,105.25}$

5. Monthly payment: $561.36

1. Find the sales tax. Here it's charged on the full price of the car

   $\mathrm{\$34,000.00}\times \mathrm{5\%}$$=\mathrm{\$1,700.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$4,800.00}-\mathrm{\$2,500.00}$$=\mathrm{\$2,300.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$34,000.00}-\mathrm{\$5,500.00}-\mathrm{\$2,300.00}+\mathrm{\$1,700.00}+\mathrm{\$450.00}$$=\mathrm{\$28,350.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.07}{12}$$=0.00583333$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 60 months

   $\frac{\mathrm{\$28,350.00}\times 0.00583333}{1-{\left(1+0.00583333\right)}^{\mathrm{-60}}}$$=\mathrm{\$561.36}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$561.36}\times 60-\mathrm{\$28,350.00}$$=\mathrm{\$5,331.84}$

6. Monthly payment: $680.58

1. Find the sales tax. Here it's charged on the full price of the car

   $\mathrm{\$39,500.00}\times \mathrm{8\%}$$=\mathrm{\$3,160.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$6,500.00}-\mathrm{\$1,875.00}$$=\mathrm{\$4,625.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$39,500.00}-\mathrm{\$4,000.00}-\mathrm{\$4,625.00}+\mathrm{\$3,160.00}+\mathrm{\$500.00}$$=\mathrm{\$34,535.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.068}{12}$$=0.00566667$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 60 months

   $\frac{\mathrm{\$34,535.00}\times 0.00566667}{1-{\left(1+0.00566667\right)}^{\mathrm{-60}}}$$=\mathrm{\$680.58}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$680.58}\times 60-\mathrm{\$34,535.00}$$=\mathrm{\$6,299.82}$

7. Monthly payment: $569.27

1. Find the sales tax. Here it's charged on the price minus your trade-in value

   $\left(\mathrm{\$26,500.00}-\mathrm{\$7,300.00}\right)\times \mathrm{7\%}$$=\mathrm{\$1,344.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$7,300.00}-\mathrm{\$2,000.00}$$=\mathrm{\$5,300.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$26,500.00}-\mathrm{\$4,250.00}-\mathrm{\$5,300.00}+\mathrm{\$1,344.00}+\mathrm{\$700.00}$$=\mathrm{\$18,994.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.05}{12}$$=0.00416667$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 36 months

   $\frac{\mathrm{\$18,994.00}\times 0.00416667}{1-{\left(1+0.00416667\right)}^{\mathrm{-36}}}$$=\mathrm{\$569.27}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$569.27}\times 36-\mathrm{\$18,994.00}$$=\mathrm{\$1,499.62}$

8. Monthly payment: $135.01

1. Find the sales tax. Here it's charged on the price minus your trade-in value

   $\left(\mathrm{\$17,000.00}-\mathrm{\$6,500.00}\right)\times \mathrm{6\%}$$=\mathrm{\$630.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$6,500.00}-\mathrm{\$2,200.00}$$=\mathrm{\$4,300.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity (you pay tax and fees up front)

   $\mathrm{\$17,000.00}-\mathrm{\$5,000.00}-\mathrm{\$4,300.00}$$=\mathrm{\$7,700.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.08}{12}$$=0.00666667$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 72 months

   $\frac{\mathrm{\$7,700.00}\times 0.00666667}{1-{\left(1+0.00666667\right)}^{\mathrm{-72}}}$$=\mathrm{\$135.01}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$135.01}\times 72-\mathrm{\$7,700.00}$$=\mathrm{\$2,020.43}$

9. Monthly payment: $874.63

1. Find the sales tax. Here it's charged on the full price of the car

   $\mathrm{\$35,000.00}\times \mathrm{5\%}$$=\mathrm{\$1,750.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$7,500.00}-\mathrm{\$2,250.00}$$=\mathrm{\$5,250.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$35,000.00}-\mathrm{\$3,300.00}-\mathrm{\$5,250.00}+\mathrm{\$1,750.00}+\mathrm{\$550.00}$$=\mathrm{\$28,750.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.06}{12}$$=0.005$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 36 months

   $\frac{\mathrm{\$28,750.00}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-36}}}$$=\mathrm{\$874.63}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$874.63}\times 36-\mathrm{\$28,750.00}$$=\mathrm{\$2,736.71}$

10. Monthly payment: $847.59

1. Find the sales tax. Here it's charged on the full price of the car

   $\mathrm{\$39,500.00}\times \mathrm{9\%}$$=\mathrm{\$3,555.00}$

2. Find your trade-in equity, the part of your old car you own: its value minus what you still owe

   $\mathrm{\$6,500.00}-\mathrm{\$2,000.00}$$=\mathrm{\$4,500.00}$

3. Find how much you borrow: the price, minus your down payment and trade-in equity, plus the tax and fees

   $\mathrm{\$39,500.00}-\mathrm{\$4,000.00}-\mathrm{\$4,500.00}+\mathrm{\$3,555.00}+\mathrm{\$500.00}$$=\mathrm{\$35,055.00}$

4. Turn the yearly rate into a monthly rate by dividing by 12, because interest is charged every month

   $i$$=\frac{0.075}{12}$$=0.00625$

5. Find the monthly payment. A standard formula gives the one amount that pays off the loan, with interest, in 48 months

   $\frac{\mathrm{\$35,055.00}\times 0.00625}{1-{\left(1+0.00625\right)}^{\mathrm{-48}}}$$=\mathrm{\$847.59}$

6. Find the total interest: all your payments added up, minus what you borrowed

   $\mathrm{\$847.59}\times 48-\mathrm{\$35,055.00}$$=\mathrm{\$5,629.39}$