New Recording 3

There are four typical methods for purchasing a car: using a credit card, a personal or in-store loan, or a savings plan. You can calculate monthly payments, payoff amounts, or interest payments. For example, if you buy a $25,000 Jeep Wrangler with a credit card at 15.1% interest, your monthly payment would be $432.85. The total interest paid over 5 years would be $25,971. The next topic we're going to be talking about is buying a car, with my co-host Skylar Jordan. There are a variety of ways of purchasing a major item such as a car, but there are four typical purchasing methods, like a credit card, a personal or in-store loan, and lastly a savings plan. When calculating these payments, you can calculate monthly payments, payoff amounts, or interest payments. For example, say you buy a 2018 Jeep Wrangler at the price of $25,000. You're making the purchase with a credit card with an interest rate of 15.1%. To calculate that, you take $25,000 and times that by 15.1%, then divide that by 12. Then you divide that by 1 minus parenthesis 1 plus .0151 divided by 12, parenthesis, with the exponent of negative 12, which is the monthly payment, times 5, which is the amount of years you're paying it off. You get $432.85. Now to find the interest rate of that purchase, you take $432.85 and times that by 12 and times that by 5, and you get $25,971 in interest rate.