My Math Forum Auto Finance Formulas

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 November 8th, 2012, 08:36 AM #1 Newbie   Joined: Nov 2012 Posts: 1 Thanks: 0 Auto Finance Formulas Hello, I am trying determine the mathematical formulas used in an online auto loan calculator. The loan calculator is located here, and has 4 different tabs with different calculations: http://www.cars.com/go/advice/financing ... anCalc.jsp - "Auto Loan Calculator" - "Affordability" - "Cash Back vs. Low Interest" - "Buy vs. Lease" I need help figuring out each tabs' formula: eg. Monthly Payment = ((vehicle price - (down payment + trade in value)) * sales tax * interest rate) / term months Any and all help is greatly appreciated. Best, Jason
 November 8th, 2012, 09:34 AM #2 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 13,988 Thanks: 995 Re: Auto Finance Formulas *****Once you figure out what you're actually borrowing (the cash that comes out of your wallet!): Formula: P = Ai / [1 - 1/(1 + i)^n] where: P = payment amount (?) Givens: A = amount borrowed ***** n = number of periods (usually months) i = interest per period (if 9% annual cpd monthly, then .09/12) That's all you get from me

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### math formula for car loan

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