# How do they calculate what your monthly auto loan payment will be?

So, I recently bought a new vehicle and was wondering how my monthly payments were figured out. After digging around a bit, I found this site where a high school teacher has posted the formula as an exercise for her students.

Well, I thought I would share this gem in case anybody else is interested.

$\frac{P(\frac{i}{12})}{(1-(1+\frac{i}{12})^{-n})}$

You can go to this site and the Almighty Internet will give you the same answer.