FristAgain.com and interest rate/monthly payment question?

Question

I'm trying to buy a car and I was thinking about borrowing $15,000 from FirstAgain.com. They advertise 6.15% so plugging that with the $15,000 for 60 months gets me:

(15000*1.0615)/60 = $267.38/month

However, the calculator on their site quotes $291.04/month using the same principal and length. Could someone explain to me if I'm missing something? This is my first time borrowing money so I may be off.

$291.04/month = ((291.04*60)-15000)/15000 = 16.41%!

16.41% is way off from 6.15% so any help trying to understand this is greatly appreciated in advance.

Answer 1

first your formula in the first example is wrong -- you have it for one year not 5 years == but when calculating money yahoo how to calculate money and they will give you the formula for any problem!!!