Jose has decided to pay off his $20,000 car loan. He has been making payments of $444.89 and has 15 months left to pay. His loan has a 12% interest rate and is
Mathematics
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Question
Jose has decided to pay off his $20,000 car loan. He has been making payments of $444.89 and has 15 months left to pay. His loan has a 12% interest rate and is to be paid off in 5 years. How much will he need to make his payment to fully pay off the car?
2 Answer

1. User Answers BlueSky06
The total amount of loan payable in 5 years = amortization *60
where:
monthly amortization = $444.89
Total amount of car loan = $26263.4
Remaining balance =15 months x monthly amortization
Remaining car loan balance = $6673.35
Jose needed an amount of $6673.35 to fully pay his fiveyear car loan. 
2. User Answers amberlymacias3689
Answer:
6,168.35
Stepbystep explanation:
Periodic interest rate 12%/12 = 1%
h = (5x12)  15 = 45
The prepayment formula gives
$20,000(1+0.01)^45 + (1(1+0.0)^45/0.01) = 6,168.35