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multiplying is dividing.

     
    Don’t hyperventilate. Compare the two sides of the equation to see what changed. First, the exponent (that little tiny
y
) is negative on the left-hand side of the equation and positive on the right-hand side. You didn’t know how to deal with that negative exponent, so that’s what you wanted, right? The other change explains how you got there. The entire thing is now the bottom number in a fraction with 1 on the top. Whew! Looks scary, but if you break it down, it’s not so bad.
    Let’s just put some numbers in to illustrate:

     
    Or:

     
    Here’s another way to think of it: Pretend that the exponent is positive and calculate it. Then divide your answer into 1.
    Of course, with 0.00375 -36 that rule doesn’t much help—unless you want to multiply 0.00375 by itself 36 times and then divide it into 1. It’s a much better plan to use a scientific or online calculator.
All in All
     
    You may want to find the entire amount you’ll pay for the car so that you’ll know what you’re getting into. In that case, you’ll need to multiply the monthly payment by the number of months in the loan.
    How much will dear Aunt Sally pay for her car over the life of the loan?
    Her monthly payment is $496.06 on a 3-year loan. That means she’ll make a monthly payment for 36 months.
    $496.06 • 36 =$17,858.16
     
    Remember, she borrowed $16,800. That means she’s paying an extra $1,058.16 ($17,858.16 - $16,800) for the privilege of financing her purchase.

Last But Not Lease
     
    You’ve seen the commercials. To the tune of a well-worn 1970s rock song, a high-performance vehicle whips through hairpin turns with amazing dexterity. A deep-voiced announcer describes the car’s precision handling, smooth ride, soft leather seats, and walnut interior.
    “Starting at $55,699 dollars,” the announcer croons. “Lease the new Agility for only $399 a month for 36 months.”
    Even if you’re no geek, you may have wondered how the heck such an expensive car can have such a tiny monthly payment? The answer is easy: Leasing is way different from buying.
    With a car lease, you’ll have a lower monthly payment and a shorter term. At the end of that period, you can either give the car back or buy it outright. That’s because you’re merely
leasing
(renting) the vehicle; it doesn’t belong to you.
    When you lease a vehicle, you agree to pay a fee if you drive it over a prescribed number of miles. You also have to be careful not to damage the car or cause unnecessary wear and tear.
    This is why leases aren’t great options for moms with 30-mile one-way commutes and sticky-fingered kids who drink from sippy-cups full of milk that invariably roll under the seat undetected.
    The other thing to consider is how well the car retains its value. Leases work best with vehicles that keep their value—which is why they’re used most commonly by Mercedes and Jaguar drivers.
    Still, leasing is a great option for many drivers. And if you fit in that category, it’s a smart idea to do some figuring before you stroll into the showroom.
    The lease itself has a bunch of parts:
1. The
cap cost
or
lease price
is the price you’ve negotiated, so it should be less than the sticker price. Otherwise, you should just buy the car.
2. The
lease term
is the length of time that you’ll have the lease. It should be no longer than the warranty that comes with the vehicle. That’s because you don’t want your warranty to run out before your lease is up. Who wants to be responsible for repairs on a car she or he doesn’t own?
3. The
residual value
is what the vehicle is worth at the end of the lease period. This is usually expressed as a percent. Thus a car may have a 60% residual value at the end of 36 months. That means the car has an estimated depreciation of 40% (100% - 60%) over 3 years.
4. The
money factor
is basically the interest you’ll pay. Leasing a car is not like leasing a house, because, unlike real estate, cars