Question

# You have just taken out a \$22,000 car loan with a 5% ​APR, compounded monthly. The...

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

​\$____

will go toward the interest.

 P = Regular Payments PV = Loan Amount r = rate of interest n = no of periods P = r (PV) 1 - (1 + r )^-n P = (5%/12)*22000 1 - (1 / (1 + 5%/12)^60)) P = 91.66666667 0.22079461 P = 415.17 Beginning Balance Interest Principal Ending Balance 1 22000 91.67 323.50 21676.50 (22000 * 5% / 12) (415.17 - 91.67) (22000 - 323.5) In first Payment principal of the loan = 323.50 In first Payment Interest= 91.67

#### Earn Coins

Coins can be redeemed for fabulous gifts.