We have provided with the information as follow

Willy and Ursha have purchased a new car for $38,000

They financed $35,000 for five years at 6.75% (APR).

Calculation of the monthly payment and total interest expense is as llow

Let Principal Amount = $ 35,000

Interest Rate is 6.75% APR (annual percentage rate of charge )

Down payment = $ 38,000- $ 35,000

   = $ 3000

Calculation of monthly payment and total interest expense

• I will assume that the interest is 6. 75% per annum compounded monthly.
  (The interest period must coincide with the payment period for our formula to work)

  i = .0675/12.

• = 0.005625
  n = 60 ( 5 Year x 12 Months)
  payment = p

  p(1 – 1.005625^-60)/.0005625

• = 35000
  I get p = 688.92

• Installment	Beginig Amount in$	Amount in $	Interest @0.5625 %	Loan payment	Balance amount
  1	35000	688.92	196.875	492.045	34507.955
  2	34507.955	688.92	194.1072469	494.8127531	34013.14225
  3	34013.14225	688.92	191.3239251	497.5960749	33515.54617
  4	33515.54617	688.92	188.5249472	500.3950528	33015.15112
  5	33015.15112	688.92	185.710225	503.209775	32511.94134
  6	32511.94134	688.92	182.8796701	506.0403299	32005.90101
  7	32005.90101	688.92	180.0331932	508.8868068	31497.01421
  8	31497.01421	688.92	177.1707049	511.7492951	30985.26491
  9	30985.26491	688.92	174.2921151	514.6278849	30470.63703
  10	30470.63703	688.92	171.3973333	517.5226667	29953.11436
  11	29953.11436	688.92	168.4862683	520.4337317	29432.68063
  12	29432.68063	688.92	165.5588285	523.3611715	28909.31946
  13	28909.31946	688.92	162.6149219	526.3050781	28383.01438
  14	28383.01438	688.92	159.6544559	529.2655441	27853.74884
  15	27853.74884	688.92	156.6773372	532.2426628	27321.50617
  16	27321.50617	688.92	153.6834722	535.2365278	26786.26964
  17	26786.26964	688.92	150.6727668	538.2472332	26248.02241
  18	26248.02241	688.92	147.6451261	541.2748739	25706.74754
  19	25706.74754	688.92	144.6004549	544.3195451	25162.42799
  20	25162.42799	688.92	141.5386575	547.3813425	24615.04665
  21	24615.04665	688.92	138.4596374	550.4603626	24064.58629
  22	24064.58629	688.92	135.3632979	553.5567021	23511.02959
  23	23511.02959	688.92	132.2495414	556.6704586	22954.35913
  24	22954.35913	688.92	129.1182701	559.8017299	22394.5574
  25	22394.5574	688.92	125.9693854	562.9506146	21831.60678
  26	21831.60678	688.92	122.8027882	566.1172118	21265.48957
  27	21265.48957	688.92	119.6183788	569.3016212	20696.18795
  28	20696.18795	688.92	116.4160572	572.5039428	20123.68401
  29	20123.68401	688.92	113.1957225	575.7242775	19547.95973
  30	19547.95973	688.92	109.9572735	578.9627265	18968.997
  31	18968.997	688.92	106.7006081	582.2193919	18386.77761
  32	18386.77761	688.92	103.4256241	585.4943759	17801.28323
  33	17801.28323	688.92	100.1322182	588.7877818	17212.49545
  34	17212.49545	688.92	96.82028692	592.0997131	16620.39574
  35	16620.39574	688.92	93.48972604	595.430274	16024.96547
  36	16024.96547	688.92	90.14043075	598.7795693	15426.1859
  37	15426.1859	688.92	86.77229567	602.1477043	14824.03819
  38	14824.03819	688.92	83.38521483	605.5347852	14218.50341
  39	14218.50341	688.92	79.97908166	608.9409183	13609.56249
  40	13609.56249	688.92	76.553789	612.366211	12997.19628
  41	12997.19628	688.92	73.10922906	615.8107709	12381.38551
  42	12381.38551	688.92	69.64529348	619.2747065	11762.1108
  43	11762.1108	688.92	66.16187325	622.7581267	11139.35267
  44	11139.35267	688.92	62.65885879	626.2611412	10513.09153
  45	10513.09153	688.92	59.13613987	629.7838601	9883.307672
  46	9883.307672	688.92	55.59360566	633.3263943	9249.981278
  47	9249.981278	688.92	52.03114469	636.8888553	8613.092423
  48	8613.092423	688.92	48.44864488	640.4713551	7972.621067
  49	7972.621067	688.92	44.8459935	644.0740065	7328.547061
  50	7328.547061	688.92	41.22307722	647.6969228	6680.850138
  51	6680.850138	688.92	37.57978203	651.340218	6029.50992
  52	6029.50992	688.92	33.9159933	655.0040067	5374.505913
  53	5374.505913	688.92	30.23159576	658.6884042	4715.817509
  54	4715.817509	688.92	26.52647349	662.3935265	4053.423983
  55	4053.423983	688.92	22.8005099	666.1194901	3387.304493
  56	3387.304493	688.92	19.05358777	669.8664122	2717.43808
  57	2717.43808	688.92	15.2855892	673.6344108	2043.80367
  58	2043.80367	688.92	11.49639564	677.4236044	1366.380065
  59	1366.380065	688.92	7.685887867	681.2341121	685.1459531
  60	685.1459531	688.92	3.92	685	0