Cruising for my dream car project taught me things that I didn’t know before. One of the things that I learned is that you pay interests depending on the length of the loan. If you pay the loan in less time, for example 48 months then I would pay the interest rate of 1.93% but if I decide to pay it in 60 months then I would pay an interest rate of 2.04%. Another factor that affects the percentage of interest you paid is your credit. If you have good credit then your interest rate will be less. If I have good credit then would pay 1.93% for 48 months, and for 60 months then I would pay 2.04% and the percentage rates you pay depends on the bank you get the loan from. For example, if I chose a loan for 48 months to pay the $35,500.00 car with an interest rate of 1.93%, in total I would pay $2,227.43 to the bank for the loan I got to pay my car. But if I have bad credit, and I have to pay the interest rate of 8% I would pay a higher amount of money with the loan of 60 months, I would end up paying $13,967.82 in interests.
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Sometimes the interest of the car is compounded quarterly which increases the amount of money I would pay for the car. If my interest rate is compounded monthly, in total I would end up paying $42,311.62 for my car even though it only costs $35,500.00 If the interest rate is compounded continuously then I would end up paying $42,367.82 because of the interest
Sometimes the interest of the car is compounded quarterly which increases the amount of money I would pay for the car. If my interest rate is compounded monthly, in total I would end up paying $42,311.62 for my car even though it only costs $35,500.00 If the interest rate is compounded continuously then I would end up paying $42,367.82 because of the interest