what is an example of the important facts on obtaining a loan for a new car as a math problem. Knowing that some facts are:

Question

credit
interest if good credit or high interest if bad credit.
how can i show an example of what i am trying to say in a math problem using formulas for financial mathematics. Any example would be great.

Beside personal credit rating, how quickly you pay off the loan will often determine the percent interest you are required to pay. This may vary with the length of the loan, e.g., 60 months vs. 24 months. Will the buyer make the minimum payment per month or more than the minimum?

The total cost of the car (principal plus interest) will also vary, depending on how much of the price is covered with a downpayment.

To begin, you might try:

Selling price of car (with desired options) + tax and license fees - downpayment + (percent interest times length of loan) = Total cost

It might help to compare the total cost with the cost of the car being completely paid upon purchase.

Since car sellers go through this a great deal, it might be worthwhile to ask sales persons how they calculate the cost to determine the minimum monthly payments.

I hope this helps. Thanks for asking.