The down payment = The price of the automobile multiplied by the percentage down divided by 100 (for 5% down becomes 5/100 or 0.05)
The interest rate = The annual interest percentage divided by 100
The monthly factor = The result of the following formula:
The monthly interest rate
The month term of the loan
Months
The monthly payment is figured out using the following formula: Monthly Payment =
The amortization breaks down how much of your monthly payment goes towards the bank's interest, and how much goes into paying off the principal of your loan.