How to Find the Installment Buying Amount

Video Transcript

"Hi, I'm Joe Salazar with Expert Village. I'm going to show you to calculate the amount you need for installment buying on the accounting calculator. Installment buying, calculating the monthly payment let's say we're buying a car we are going to finance 22,000. The rate we will pay is 9%, we will put the base price in the memory and then we'll multiply it by 9%. This will be our interest and the term will be 5 years, that's our total interest. Add it to the amount financed recalling the total amount and dividing it by the term of 5 years and divide it again by 12 months in a year. It gives us our monthly payment for that automobile. The result is on the screen and on the tape."