1. Determine the Loan Amount:
- Subtract any down payment from the total car price.
- In this case, let's assume you make a down payment of $3,000.
- Loan amount = $15,000 - $3,000 = $12,000
2. Calculate the Monthly Interest Rate:
- Divide the annual interest rate by 12 to find the monthly interest rate.
- For example, if the annual interest rate is 4%, the monthly interest rate would be 4% / 12 = 0.00333 (or 0.333%)
3. Calculate the Total Number of Payments:
- Multiply the loan term in years by 12 to get the total number of monthly payments.
- For instance, if the loan term is 5 years, the total number of payments would be 5 years x 12 months = 60 months.
4. Calculate the Monthly Payment:
- Use the formula: Monthly Payment = (Loan Amount x Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Total Number of Payments))
- Plugging in the values, we get: Monthly Payment = ($12,000 x 0.00333) / (1 - (1 + 0.00333)^(-60))
- Monthly Payment ≈ $220.59
Therefore, the estimated monthly payment for a $15,000 car loan with a $3,000 down payment, an annual interest rate of 4%, and a 5-year loan term would be approximately $220.59.
Please note that this calculation is an approximation, and the actual monthly payment may vary based on specific loan terms and conditions offered by the lender. It's always best to contact a lender or use a car loan calculator to get an accurate estimate.
