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in this video were going to talk about how to calculate the monthly car payment of a car loan so lets work on this problem here sally takes a 10-year 30 000 loan to purchase a car at a six percent fixed annual interest rate what is sallys monthly card payment feel free to pause the video if you want to try this problem so the formula that were going to use is this equation the monthly car payment is going to be the principal times the fixed annual interest rate divided by n now n is the number of payments that will be made in one year since were trying to calculate the monthly payment and theres 12 months in a year n has to be 12. so were going to divide all of this by 1 minus 1 plus r over n raised to the negative nt so thats the formula that you need in order to calculate the monthly payment of any loan so lets write down what we know we know the principle of the loan its thirty thousand dollars now sally didnt put any money down so this is just the beginning balance of th