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To calculate the monthly payment for the car, we'll use the formula for a fixed-rate loan:

\[
M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ M $ = monthly payment
- $ P $ = principal amount (loan amount), which is $24,000
- $ r $ = monthly interest rate (annual interest rate divided by 12 months)
- $ n $ = total number of payments (loan term in months)

### Given values:
- Principal amount, $ P = 24,000 $ dollars
- Annual interest rate = 3%, so monthly interest rate, $ r = \frac{3\%}{12} = 0.25\% = 0.0025 $
- Loan term, $ n = 36 $ months

Now we can substitute these values into the formula:

\[
M = \frac{24,000 \cdot 0.0025 \cdot (1 + 0.0025)^{36}}{(1 + 0.0025)^{36} - 1}
\]

Calculating this expression:

1. Calculate $ (1 + 0.0025)^{36} $.
2. Multiply the result by 24,000 and 0.0025.
3. Divide the final value by $ (1 + 0.0025)^{36} - 1 $.

Let's proceed with the calculations.The monthly payment for the car would be approximately **$697.95**.

Would you like more details or have any questions about this calculation?

Here are some related questions you might find useful:
1. How does the interest rate affect monthly payments?
2. What would the monthly payment be if the loan term was extended to 48 months?
3. How much total interest would be paid over the course of the loan?
4. What happens to the payment amount if a larger down payment is made?
5. How can refinancing help reduce monthly car payments?

**Tip:** Always check for any additional fees or charges that might be included in your car loan to get an accurate estimate of the total cost.

You want to buy a $24,000 car. The company is offering a 3% interest rate for 36 months (3 years). What will your monthly payments be?

Learn how to calculate the monthly payments for a $24,000 car loan with a 3% interest rate over 36 months (3 years). This solution demonstrates key algebraic formulas, including the fixed-rate loan formula, to help you understand how monthly payments are determined.

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