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How to calculate monthly payments over the life of a loan or purchase is using the formula attached. Car is $148,250 interest rate is 5.34%

To calculate the monthly payment using the given formula, let's identify and substitute the values.

The formula is:
\[
d = \frac{P_N \left( \frac{r}{k} \right)}{\left( 1 + \frac{r}{k} \right)^{Nk} - 1}
\]
where:
- $ d $ = amount of each monthly deposit (payment),
- $ P_N $ = principal or initial loan amount,
- $ r $ = annual interest rate (as a decimal),
- $ k $ = number of compounding periods per year (monthly means $ k = 12 $),
- $ N $ = number of years for the loan.

Given values:
- $ P_N = 148,250 $ (cost of the car),
- $ r = 5.34\% = 0.0534 $ (annual interest rate in decimal form),
- $ k = 12 $ (monthly compounding),
- $ N $ = the loan period in years (you'll need to provide this to proceed).

Once we know the term $ N $, I can substitute all values and compute the monthly payment $ d $. Could you provide the loan duration in years?

Learn how to calculate monthly payments for a car loan of $148,250 with a 5.34% interest rate using the compound interest formula. This guide covers key finance concepts, including compounding periods and loan payment calculations, ideal for undergraduate students.

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