How much will Molly’s monthly payment be using the Bankrate calculator? How much total interest will Molly pay using this plan?

Answer: Molly’s monthly payment by using the Bankrate calculator is $286 per month.

It is given that

The downpayment Molly has = $2500.

Interest rate APR = 1.9%

Cash allowance by dealer = $500

Selling price = $25,495

Loan tenure N= 7 years

Amount of loan needed = 25495-2500-500 = $22495

What is Equated monthly payment(EMI)?

An equated monthly installment (EMI) is a set monthly payment provided by a borrower to a creditor on a set day, each month.

The EMI or monthly payment will be calculated by the following formula,

EMI = (P.(APR)/(12) .(1+(APR)/(12))^N )/((1+(APR)/(12))^N-1 )

Put APR =0.019(decimal value of APR)

N = 7

EMI = $286 per month.

Therefore, Molly’s monthly payment by using the Bankrate calculator is $286 per month.