Below is a common problem in which the payments are not the same time period as the interest rate or the time period. In order to compute the payment cocrectly you nieed to at iist all variables so that they are the same penod as the payment (note some calculators might do this automatically, you can set them so they do not automaticaly make this cortection) So if the problem has monthly payments. but the problem has an annual interest rate and time period over years, you would need to divide the interest by 12 and muliply the fine period by 12 . You would make simiar adjustments if the payment was per day or serre annual You are considering buyng a new motorcycle. You are goeng to borrow 314462 . If you can flegotiate a nomenal arnual interest rate of 6 percent (i.e. 6 th egails the ApFe and you wish to pay for the car over a 3 year period, what are your monthly car payments