Question

Use an Excel worksheet to answer the following five car loan problems

you borrowed money from your local bank to purchase a car. The bank requires you to repay the loan over 48 months and charges a fixed, annual interest rate of 6 percent. The amount of your loan is $25,000

a,How much will your loan payment be each month?

b,How much of the first loan payment will go toward principal?

c,How much interest will you pay during the 1^{st} year
of the loan (the first 12 payments)?

d,What will your loan balance be after the 24^{th}
payment?

e,How much will you pay in interest during the last year of the loan (payments 37-48)?

Answer #1

a.

How much will your loan payment be each month

=25000/((1-(1+(6%/12))^(-48))/(6%/12))=587.13 is answer

b.

How much of the first loan payment will go toward principal=587.13-25000*(6%/12)=462.13

c.

loan value at the end of 12 months=587.13*((1-(1+(6%/12))^(-36))/(6%/12))=19299.56

principal paid in first year=25000-19299.56=5700.44

How much interest will you pay during the 1st year of the loan (the first 12 payments)=587.13*12-5700.44=1345.12

d.

What will your loan balance be after the 24th payment=587.13*((1-(1+(6%/12))^(-24))/(6%/12))=13247.34

e.

loan value after 36 months=587.13*((1-(1+(6%/12))^(-12))/(6%/12))=6821.82

so principal paid in the last year =6821.82

How much will you pay in interest during the last year of the loan (payments 37-48)=587.13*12-6821.82=223.74

the above are answer

1. Holly just borrowed 68,157 dollars from the bank. She plans
to repay this loan by making equal quarterly payments for 10 years.
If the interest rate on the loan is 10.96 percent per year and she
makes her first quarterly payment in 3 months from today, then how
much must Holly pay to the bank each quarter?

You have just taken out a $ 15,000 car loan with a 4 %APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest?
When you make your first payment,......will go toward the
principal of the loan and ..... will go toward the
interest. (Round to the nearest cent.)

Problem I) Determine the monthly payment required if you want to
borrow $30,000 from a
bank to buy a car, at 6%/year nominal interest, for 6 years.
Problem 2) For the previous car loan, when you handed the bank
your check for the 24th
monthly payment, how much of that check was for interest, and
how much went toward
reducing what you owed on the car (principal reduction)?
Problem 3) How much total interest over the life of the loan...

You have just taken out a $28,000 car loan with a 6%APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.)
When you make your first payment,$__will go toward the
principal of the loan and$___ will go toward...

Joe secured a loan of $13,000 four years ago from a bank for use
toward his college expenses. The bank charges interest at the rate
of 5%/year compounded monthly on his loan. Now that he has
graduated from college, Joe wishes to repay the loan by amortizing
it through monthly payments over 15 years at the same interest
rate. Find the size of the monthly payments he will be required to
make. (Round your answer to the nearest cent.)
$...

You have just taken out a
$22,000
car loan with a
5%
APR, compounded monthly. The loan is for five years. When you
make your first payment in one month, how much of the payment will
go toward the principal of the loan and how much will go toward
interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.)
When you make your first payment,
$___
will go toward the principal of the loan and...

You have just taken out a $24,000 car loan with a 4% APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.)
a. When you make your first payment, $ ______ will go toward
the principal of the...

You have just taken out a $28,000 car loan with a 6 %APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.)
When you make your first payment,$__ will go toward the
principal of the loan and $__will...

Your dream is about to come true! You are about to buy your
first classic sports car. To do so, you have arranged to borrow
$80,000 from your local commercial bank. The interest rate on the
loan is 7.00%. To simplify the calculations, assume that you will
repay your loan over the next six years by making annual payments
at the end of each year. According to the loan officer at the
commercial bank, you must answer the following questions...

You borrowed $30,000 from your bank to buy a car. The interest
rate is 8%. You amortize the loan over 48 months and you start
paying the loan one month from now. (a) What is the monthly payment
of your loan, (b) What will be your loan balance after 27 months,
(c) How much interest would you have paid in total over the life of
the loan?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 13 minutes ago

asked 54 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 4 hours ago

asked 4 hours ago