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ok guys, last night i just found my time to look at da paper works of our car loan right... so i looked at the numbers but when i try to calculate, it doesnt add up? right now i have 2 ways of solving them i dont know which one is right but depending on which one of them, i dunno if im paying less than what im supposed to or way more than im suppose to.

ok is this da way u calculate everything?

IB= Initial Balance
APR= Finance Rate
IR= Interest Rate
IY= Interest Years
TB= Total Balance
MP= Monthly Payments

1st
IB*APR= IR ==> IB+IR=TB ==> TB/60= MP

OR

2nd
IB*APR= IR ==> IR*5(years to pay)= IY ==> IB+IY= TB ==> TB/60 = MP

ILL APPRECIATE ANY RESPONSES......
Dudes don't post any rude @ss comments, if ur words won't help me, just keep it to urself.

THANKS AGAIN

 
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oh my hell you just made my head explode

thanks alot.

 
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funny dude but, whoa totally not the answer i was expecting BRILL

HELP MEEEE [IMG]i/expressions/face-icon-small-sad.gif[/IMG]

 
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Honestly, if you type correctly, you'll get more reasonable responses, instead of the smart *** ones telling you to type right.

 
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@ blk4 dat was cool!

smart azz comment for a MEMBER i should say @ nrrhgreg
I wasn't asking for nonsense, this thread was intended for smart people out there in the forum that would be more than willing to help me more than they would bash me, because that's what the forum is for.

if u understand english, like ur lame old azz pic which ive seen a million times. u'll understand my last words of my post.
so stop the crying and whining u girly F@G!

back to the question. please help me understand how do u solve ur monthly payments?

 
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Personally, i think you're turning a ant hill into a mountain... i think the first one you did is what you're looking for in a monthly balance. If you're still not sure on what you should do, talk to the lein holder/bank the loan is with, i'm sure they'll be more than happy to tell you

 
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altough the second example looks accurate aswell... sorry dude, i didn't mean to second guess myself.

 
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Hey man, I am kind of thinking the 1st one is right but thats just a quick guess by looking at it, I am not 100% on it either, but you might want to have an accountant look at it or go to the bank and have them explain how the numbers and math work, there could be a problem on their end and you might end up on the plus side but them again you could be not paying enough and own them more, hard call.

Good Luck

Crashoveride

 
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yeh dudes..... i was totally wid the first one when i did it at first, but i came out wid a smaller amount to pay... which made me think the possibility that im paying more than what im supposed to.
but then again, i thought of the second one and its rather rational because APR is for annual rate, and i thought maybe i should multiply it by 5 since it is 5 years to pay. and i came out wid a much bigger balance. which gives me an idea whether im paying less than what im supposed to then if i ask dem could end me wid a higher monthly payment...... WELL DAT WOULD BE AN @SS!

thanks again guys, well i think ill just wait for other opinions once more members log in later.

THANKS!

 
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I am no financial wiz, so I would suggest you do this: Do a search for an amortization table....once you find one, put in your numbers. Just plug in your interest rate, and the amount you borrowed, and the lenght of the loan, and it should calculate the payment for you....

Try this link.....


Just plug in your numbers....

 
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the interest is based on how much you still owe, not the original, so as you pay more and more into the balance of the car, youll be paying less and less interest. the credit union i went to gave me a sheet that broke each payment down into the amount of interest and principle i was paying each month, and while the payment stayed the same every time ($166.93) the interest went down each month, so more was going into lowering the balance. my loan has simple interest, so it could be different than yours if you have the other kind (i think its called compound interest but im not sure)

 
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thanks guys..... that was very helpful

so let me get this straight..... the more you pay the lower the interest rates goes? but the more u pay the higher the principal is?

ZZCIVIC dat was an awesome link.... THANKS MAN!

 
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No, not exactly.....your interest rate will remain the same, no matter what you pay. If you pay above the monthly payment amount, then the amount over you paid, comes directly off of the principle. For example, if your payment is $300, and you pay $350. Then the bank takes that extra 50 bucks you payed and take it off the amount you owe. This is good, because now you don't have to pay interest on that 50 bucks anymore. So the bank will now be charging you less, but its likely your payment wont change at all. You will most likely have to ask them for a print out of you loan if you want to keep track of it. They dont really like it when you pay over. They lose the interest charges they could have gotten from you. Now on a car, its not that big of a deal really. But on a 100,000 dollar loan, its a HUGE deal. Glad the link helped.

 
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so zzcivic lemme get dis straight...... i meant to say, the dollar amount of the interest goes down as you go farther on the loan, but the APR remains the same. also, u mean to say that if my monthly payments of for example $335 and i payed $435, does that mean that the extra $100 i payed them will not garner any interest? it would just be deducted off my account balance?
so the dollar value of the interest goes down because my total balance depreciates? but the principle balances it off and it goes up, that's why i still have the same amount of payments?