Suppose that you borrow ?$17,000 for five years at 8?% toward the purchase of a car. Find the monthly payments and the total interest for the amortized loan.
The monthly payment is ?$ . ?
(Do not round until the final answer. Then round to the nearest cent as? needed.)
The total interest for the loan is ?$ . ?
(Use the answer from part a to find this answer. Round to the nearest cent as? needed.)
The monthly payment is $344.70
Using financial calculator BA II Plus - Input details: |
# |
I/Y = Rate = 8/12 = |
0.666667 |
FV = Future value = |
$0 |
N = Total payment term = 12 x 5 Years = |
60 |
PV = Present value of loan = |
-$17,000 |
CPT > PMT = Monthly Payment = |
$344.70 |
The total interest on loan = PMT x N - PV
The total interest on loan = 344.70 x 60 - 17000
The total interest on loan = $3,682.00
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