Example: Finding the right terms of finance using a calculator
Jesse is looking to purchase his first car through a financier because he doesn't have the capital to buy a vehicle outright. He wants to figure out what his repayment amounts will be before finalising his decision, so he turns to the car lease calculator for help.
He is looking for a $10,000 loan with a 3-year loan term at 5% interest, and he wants to make monthly repayments. He decided against a residual or balloon payment, so he'll leave that field blank. He inputs the loan amount, the loan term, the interest rate and his desired repayment frequency into the calculator and finds out that he'll have to make monthly repayments of $271.33 plus $27.13 GST on this type of loan.
* This is a fictional, but realistic, example.