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Calculating payments, interest, and APR on auto loan. After careful comparison shopping, Isabella Green decides to buy a new Toyota Camry. With some options added, the car has a price of $23,558-including plates and taxes. Because she can't afford to pay cash for the car, she will use some savings and her old car as a trade-in to put down $8,500. Isabella plans to finance the rest with a $15,058.00, 60-month loan at a simple interest rate of 4 percent.
Problem 1: How much interest will Isabella pay over the full (60-month) life of the loan?
Problem 2: what will her monthly payment be?
Problem 3: what is the APR on this loan ?
Financial Statement Analysis and Preparation
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