Question

You have just taken out a

$ 29 comma 000$29,000

car loan with a

8 %8%

​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.)

Answer 1

		P =	Regular Payments
		PV =	Loan Amount
		r =	rate of interest
		n =	no of periods
		P =	r (PV)
			1 - (1 + r )^-n
		P =	(8%/12)*29000
			1 - (1 / (1 + 8%/12)^60))	84
		P =	193.3333333
			0.328789556
		P =	588.02
	Beginning Balance	Interest	Principal	Ending Balance
1	29000	193.33	394.68	28605.32
		Principal in First Payment	394.68
		Interest in First Payment	193.33