# FAQ

# What is the amount of the interest rate?

# Is the insurance included in the monthly payment?

# What's the monthly payment?

# Is the interest rate flat or not?

# What is a Down Payment?

# What are the insurance conditions?

# Am I obliged to pay the bank's required down payment or I can pay whatever I want at first?

# If I pay cash for my car, will I benefit from the insurance?

# How do I calculate the monthly payment?

Having the price of the car and the interest rate and insurance rate, we can calculate the monthly payment as follows:

RYMCO Vehicle:A $20,000

Bank X rate: 4.5% ( per year)

Insurance rate: 10% ( on 5 years)

Loan period: 5 years or 60 months (Meaning 60 payments)

Down payment: 20%

Down payment = car price x Down payment rate

= $20,000x 20%

= $4,000

Interest costA A A = total price x insurance rate

=$20,000 x 10%

=$2,000

Cash to finance = car price – down payment

= $20,000- $4000

= $ 16,000

Total to finance = Cash to finance + Interest cost

= $ 16,000 + $2,000

=$ 18,000

Interest amount over 5 years =Total to finance x interest rate x 5 years

= $ 18,000 x 4.5% x 5

=$ 4,050

Monthly payment = total to finance + interest amount over 5 years / 60 payments (60 months)

A A A A A A A A A =($18,000 + $4,050) /60

A A A A A A A A A =$ 367.5

Therefore, we will have the following:

Car price : $20,000

Down payment: $4,000

Loan period: 60 months

Insurance amount: $ 2,000

Monthly payment: $ 367.5