Follow The Steps Above To Find \[$ C \$\], The Total Of The Payments, And The Monthly Payment. Choose The Correct Answers.Tom Slick Buys A Set Of Tires For His Car. The Price, Including Tax, Is $\$ 950.00$. Tom Finances The Tires

Feb 26, 2025 by ADMIN 232 views

**Calculating Total Payments and Monthly Payments: A Step-by-Step Guide**

Understanding the Problem

Tom Slick buys a set of tires for his car, and the price, including tax, is $950.00. He finances the tires, and we need to find the total of the payments and the monthly payment. In this article, we will follow the steps to calculate the total payments and the monthly payment.

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

The interest rate is not given in the problem. However, we can assume a typical interest rate for a car loan, which is around 6% per annum.

Step 3: Determine the Loan Term

The loan term is not given in the problem. However, we can assume a typical loan term for a car loan, which is 5 years.

Step 4: Calculate the Monthly Payment

To calculate the monthly payment, we can use the formula:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Plugging in the values, we get:

Monthly Payment = ($950.00 x (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-5 x 12)) Monthly Payment = $17.08

Step 5: Calculate the Total Payments

To calculate the total payments, we can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12 Total Payments = $17.08 x 5 x 12 Total Payments = $1,024.80

Conclusion

In this article, we followed the steps to calculate the total payments and the monthly payment for Tom Slick's car loan. The monthly payment is $17.08, and the total payments are $1,024.80.

Calculating Total Payments and Monthly Payments: A Step-by-Step Guide

Understanding the Problem

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

The interest rate is not given in the problem. However, we can assume a typical interest rate for a car loan, which is around 6% per annum.

Step 3: Determine the Loan Term

The loan term is not given in the problem. However, we can assume a typical loan term for a car loan, which is 5 years.

Step 4: Calculate the Monthly Payment

To calculate the monthly payment, we can use the formula:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Plugging in the values, we get:

Monthly Payment = ($950.00 x (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-5 x 12)) Monthly Payment = $17.08

Step 5: Calculate the Total Payments

To calculate the total payments, we can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12 Total Payments = $17.08 x 5 x 12 Total Payments = $1,024.80

Conclusion

In this article, we followed the steps to calculate the total payments and the monthly payment for Tom Slick's car loan. The monthly payment is $17.08, and the total payments are $1,024.80.

Calculating Total Payments and Monthly Payments: A Step-by-Step Guide

Understanding the Problem

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

The interest rate is not given in the problem. However, we can assume a typical interest rate for a car loan, which is around 6% per annum.

Step 3: Determine the Loan Term

The loan term is not given in the problem. However, we can assume a typical loan term for a car loan, which is 5 years.

Step 4: Calculate the Monthly Payment

To calculate the monthly payment, we can use the formula:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Plugging in the values, we get:

Monthly Payment = ($950.00 x (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-5 x 12)) Monthly Payment = $17.08

Step 5: Calculate the Total Payments

To calculate the total payments, we can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12 Total Payments = $17.08 x 5 x 12 Total Payments = $1,024.80

Conclusion

In this article, we followed the steps to calculate the total payments and the monthly payment for Tom Slick's car loan. The monthly payment is $17.08, and the total payments are $1,024.80.

Calculating Total Payments and Monthly Payments: A Step-by-Step Guide

Understanding the Problem

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

The interest rate is not given in the problem. However, we can assume a typical interest rate for a car loan, which is around 6% per annum.

Step 3: Determine the Loan Term

The loan term is not given in the problem. However, we can assume a typical loan term for a car loan, which is 5 years.

Step 4: Calculate the Monthly Payment

To calculate the monthly payment, we can use the formula:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Plugging in the values, we get:

Monthly Payment = ($950.00 x (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-5 x 12)) Monthly Payment = $17.08

Step 5: Calculate the Total Payments

To calculate the total payments, we can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12 Total Payments = $17.08 x 5 x 12 Total Payments = $1,024.80

Conclusion

In this article, we followed the steps to calculate the total payments and the monthly payment for Tom Slick's car loan. The monthly payment is $17.08, and the total payments are $1,024.80.

Calculating Total Payments and Monthly Payments: A Step-by-Step Guide

Understanding the Problem

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

Q&A: Calculating Total Payments and Monthly Payments

Q: What is the formula to calculate the monthly payment?

A: The formula to calculate the monthly payment is:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Q: What is the interest rate used in the formula?

A: The interest rate used in the formula is the annual interest rate divided by 12.

Q: What is the loan term used in the formula?

A: The loan term used in the formula is the number of years the loan is for, multiplied by 12.

Q: How do I calculate the total payments?

A: To calculate the total payments, you can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12

Q: What is the total payments formula?

A: The total payments formula is:

Total Payments = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12)) x Loan Term x 12

Q: Can I use a calculator to calculate the monthly payment and total payments?

A: Yes, you can use a calculator to calculate the monthly payment and total payments. Most calculators have a built-in formula for calculating monthly payments and total payments.

Q: What is the difference between the monthly payment and the total payments?

A: The monthly payment is the amount you pay each month, while the total payments is the total amount you pay over the life of the loan.

Q: Can I use this formula to calculate the monthly payment and total payments for any type of loan?

A: Yes, you can use this formula to calculate the monthly payment and total payments for any type of loan, including car loans, personal loans, and mortgages.

Q: What is the importance of calculating the monthly payment and total payments?

A: Calculating the monthly payment and total payments is important because it helps you understand how much you will pay each month and the total amount you will pay over the life of the loan.

Q: Can I use this formula to calculate the monthly payment and total payments for a loan with a variable interest rate?

A: No, you cannot use this formula to calculate the monthly payment and total payments for a loan with a variable interest rate. This formula is only for loans with a fixed interest rate.

Q: Can I use this formula to calculate the monthly payment and total payments for a loan with a balloon payment?

A: No, you cannot use this formula to calculate the monthly payment and total payments for a loan with a balloon payment. This formula is only for loans with a fixed monthly payment.

Conclusion

In this article, we have discussed how to calculate the total payments and monthly payment for a loan. We have also answered some common questions about calculating the monthly payment and total payments. We hope this article has been helpful in understanding how to calculate the total payments and monthly payment for a loan.

Calculating Total Payments and Monthly Payments: A Step-by-Step Guide

Understanding the Problem

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

The interest rate is not given in the problem. However, we can assume a typical interest rate for a car loan, which is around 6% per annum.

Step 3: Determine the Loan Term

The loan term is not given in the problem. However, we can assume a typical loan term for a car loan, which is 5 years.

Step 4: Calculate the Monthly Payment

To calculate the monthly payment, we can use the formula:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Plugging in the values, we get:

Monthly Payment = ($950.00 x (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-5 x 12)) Monthly Payment = $17.08

Step 5: Calculate the Total Payments

To calculate the total payments, we can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12 Total Payments = $17.08 x 5 x 12 Total Payments = $1,024.80

Conclusion

In this article, we followed the steps to calculate the total payments and the monthly payment for Tom Slick's car loan. The monthly payment is $17.08, and the total payments are $1,024.80.

Calculating Total Payments and Monthly Payments: A Step-by-Step Guide

Understanding the Problem

Step 1: Determine the Loan Amount

The loan amount is the price of the tires, which is $950.00.

Step 2: Determine the Interest Rate

The interest rate is not given in the problem. However, we can assume a typical interest rate for a car loan, which is around 6% per annum.

Step 3: Determine the Loan Term

The loan term is not given in the problem. However, we can assume a typical loan term for a car loan, which is 5 years.

Step 4: Calculate the Monthly Payment

To calculate the monthly payment, we can use the formula:

Monthly Payment = (Loan Amount x (Interest Rate / 12)) / (1 - (1 + (Interest Rate / 12))^(-Loan Term x 12))

Plugging in the values, we get:

Monthly Payment = ($950.00 x (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-5 x 12)) Monthly Payment = $17.08

Step 5: Calculate the Total Payments

To calculate the total payments, we can multiply the monthly payment by the number of payments:

Total Payments = Monthly Payment x Loan Term x 12 Total Payments = $17.08 x 5 x 12 Total Payments = $1,024.80

Conclusion

In this article, we followed the steps to calculate the total payments and the monthly payment for Tom Slick's car loan. The monthly payment is $17.08, and the total payments are $1,024.80.