You want to buy a car. The loan amount will be $31,000. The company is offering a 2% interest rate for 36 months (3 years). What will your monthly payments be?

$

It seems like I can’t do more advanced data analysis right now. Please try again later. If you'd like, I can guide you through the manual calculation steps, or you can use an online loan calculator to get the result.

Here’s how to manually calculate the monthly payment:

1. **Calculate the Monthly Interest Rate**:
   \[
   r = \frac{0.02}{12} \approx 0.00167
   \]

2. **Total Number of Payments**:
   \[
   n = 36
   \]

3. **Plug these values into the formula**:
   \[
   PMT = \frac{31000 \times 0.00167}{1 - (1 + 0.00167)^{-36}}
   \]

4. **Calculate** the numerator and denominator separately, and then find $ PMT $.

If you have any questions or need help with another calculation, feel free to ask! Here are some related questions:

1. What is the total interest paid over the 3 years?
2. How much will your monthly payment be with a 4% interest rate?
3. What would your payment be if the loan term were extended to 48 months?
4. How does the total payment compare with making a $5,000 down payment?
5. What is the impact of adding extra payments to reduce the principal?

**Tip:** Shorter loan terms generally result in higher monthly payments but lower total interest paid.

You want to buy a car. The loan amount will be $31,000. The company is offering a 2% interest rate for 36 months (3 years). What will your monthly payments be?

Learn how to calculate monthly car loan payments for a $31,000 loan with a 2% annual interest rate over 36 months. This problem covers key concepts such as loan amortization and interest rate calculation. Step-by-step instructions are provided for high school students in Grades 10-12.

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