A $30,000 car loan at 6% interest for 60 months (5 years) has a monthly payment of $580. Over the life of the loan, you will pay $4,800 in total interest, making the total cost $34,800.
Key Numbers
- •Monthly payment: $580
- •Total interest over 5 years: $4,800
- •Total cost of the loan: $34,800
- •Interest-to-principal ratio: 16%