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Andy-M · 2005-09-15 #2

P = (PV*IR) / (1 - (1 + IR)^(-N))

P = payment (per period)
PV = present value of money (principal)
IR = interest rate
N = number of payments or periods

I think you're after the P (monthly payment). PV is the amount owing for the vehicle. So for example, a $25,000 with $10,000 will have $15,000 remaining.

That's equivalent to taking out a $15,000 loan. If it's paid monthly with a 3% interest rate (IR = 0.03/12) over a 2 year period (24 pay periods), then you'll have a monthly payment of $644.72 or $15473.28 after 2 years (24 x $644.72).

In that case, you can use a modified formula:

P = ((PV-DP)*IR) / (1 - (1 + IR)^(-N))

P = payment (per period)
PV = present value of car
DP = down payment
IR = interest rate (remember to divide this by 12 if monthly!)
N = number of payments or periods

or for total price with a loan:

TP = (((PV-DP)*IR) / (1 - (1 + IR)^(-N)))*N

	Andy-M	2005-09-15 #2
	P = (PVIR) / (1 - (1 + IR)^(-N)) P = payment (per period) PV = present value of money (principal) IR = interest rate N = number of payments or periods I think you're after the P (monthly payment). PV is the amount owing for the vehicle. So for example, a $25,000 with $10,000 will have $15,000 remaining. That's equivalent to taking out a $15,000 loan. If it's paid monthly with a 3% interest rate (IR = 0.03/12) over a 2 year period (24 pay periods), then you'll have a monthly payment of $644.72 or $15473.28 after 2 years (24 x $644.72). In that case, you can use a modified formula: P = ((PV-DP)IR) / (1 - (1 + IR)^(-N)) P = payment (per period) PV = present value of car DP = down payment IR = interest rate (remember to divide this by 12 if monthly!) N = number of payments or periods or for total price with a loan: *TP = (((PV-DP)IR) / (1 - (1 + IR)^(-N)))N*