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How do you find the total cost of an auto loan?
Note: This calculator only shows the total accrued loan cost for theprincipal and interest. This does not include other additional costsassociated with insurance or taxes.
How do you find the total loan cost?
To calculate the total loan cost of a vehicle loan use this formula:
r = Monthly Interest Rate (in Decimal Form) =(Yearly Interest Rate/100) / 12
P = Principal Amount on the Loan
N = Total # of Months for the loan ( Years on the loan x 12)
Example: The total cost for 5 year loan, with a principal of $25,000,and a yearly interest rate of 6.5%:
r = (6.5 / 100) / 12 = .005416667
P = 25,000
N = (30 x 12) = 60
The total cost for the life of the loan is $29,349.22
the cost of a loan is the sum total of the principal amount borrowed and accrued interest you pay once you liquidate the whole loan.
The total cost of a loan is the actual money you borrow plus all of the interest you will pay
The cost refers to pay the extra i.e. interest and the expense which occurs to get the loan. Also the transaction cost which occurs after the loan.
The cost of borrowing: are the benefits and other costs incurred by the entity as a result of borrowing money.
The cost of borrowing may include the following: -
(A) interest or bank charges on each of retirement accounts overdrafts and borrowing short and long term.
(B) the discount or premium on the borrowing consumption.
(C) Other costs incurred by the enterprise in order to borrow consumption.
(D) Currency arising from borrowing in foreign currency to the extent that these differences are considered an adjustment to interest cost differentials.
The cost of Loan includes principal,interests,insurance premiums,closing costs and servicing costs.
cost of includes- total sum of pricipal+ all interest you pay on maturity
Cost of loan (mark up on deposit)+ inflation premium+default risk premium+kibor
