(Average values continued)

EXAMPLE: A shopper has negotiated a car loan with an interest rate of 3.9% per year. The loan period is 5 years. What is the cost of the car loan if the car price is $20,000? Cost = (loan amount) x (interest rate/ year ) x (number of years) Cost = $20,000 x (3.9 % / year ) x 5 years Cost = $20,000 x ( 3.9 /100) x 5 Cost = $20,000 x ( 0.039 ) x 5 Cost = $3900. The total price will be $20000. + $3900. = $23900.    Each monthly payment will be $23900. / 60 month = $398.33 per month Note: The number "60" is a count and an exact number.