Financing A Car
ALL OF THE INS AND OUTS
How does it relate?
This means that their value decreases as time goes on. Depending on how much the car is worth at the time of purchase, the depreciation could change dramatically over the amount of time you own it.
An interest rate is the annualized cost of credit or debt capital computed as the percentage ratio of interest to the principal. Since loans and other money accounts have these interest rates, they gain or lose money based on what they are. A way to calculate this loss or gain is by using the Compound Interest Formula.