Determine a Monthly Car Payment From the Loan Amount (Loan Formula)

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This video explains how to use the loan formula to determine a monthly payment from the loan amount.
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I used this formula to compare it to my actual car loan, and it came pretty close. I was off about 2 dollars, and not sure why I had that margin of error. But overall, I was happy to use this formula and get pretty close to my loan payment. Thanks!

LA-dljv
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Thank you for the detailed breakdown. However, most auto-loans work on a daily interest method and this formula applied to personal loans. Could you explain how to modify this calculation to accommodate daily interest? thanks

vshri
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Very helpful, yet very confusing. I had no idea calculating a car loan can be so tedious.

dapperlygrungy