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?
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 five-year car loan.
