Question

You have just taken out a $17,000 car loan with a 8% ​APR, compounded monthly. The...

You have just taken out a $17,000 car loan with a 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.)

Homework Answers

Answer #1

Loan amount (PV) = $17000

No of monthly installments (N) = 60

APR (I) = 8% p.a = 0.6667% p.a.

Therefore Installment amount (PMT) = ??

Using financial calculator or PMT function in excel

Therefore Installment amount (PMT) = $ 344.6987029

Interest for 1st month = principal balance outstanding at beginning of month 1 x APR x 1/12

Interest for 1st month = 17000 x 8% /12 = $ 113.3333333

Therefore principal component in 1st month installment = Installment amount - Interest amount

Principal component in 1st month installment = 344.6987029 - 113.3333333 = $ 231.3653696

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
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...
You have just taken out a $24,000 car loan with a 4% ​APR, compounded monthly. The...
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...
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...
You have just taken out a $28,000 car loan with a 6 %​APR, compounded monthly. 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...
You have just taken out a $30,000 car loan with a ​7% APR, compounded monthly. The...
You have just taken out a $30,000 car loan with a ​7% APR, compounded monthly. The loan is for five years. When you make your first payment in one​ month, how much of the payment will go toward the principal of the loan and how much will go toward​ interest?  ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) When you make your first​ payment, ​$ nothing will go toward the principal of the loan...
You have just taken out a car loan for $22,000 with a 5% APR, compounded monthly....
You have just taken out a car loan for $22,000 with a 5% APR, compounded monthly. The loan is for 5 years. When you make you first payment in one month, how much of the payment will go toward the principal of the loan and how much will go towards the interest? (Note: be careful not to round any intermediate steps less than six decimal places.) When you make you first payment, $X will go towards the principal of the...
You have just taken out a $ 29 comma 000$29,000 car loan with a 8 %8%...
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.)
You have just taken out a $ 30000 car loan with a 5 % ​APR, compounded...
You have just taken out a $ 30000 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.) I have tried it different ways but can't seem to figure it out, I...
You have just taken out a $24,000 car loan with a 7% APR, compounded monthly. The...
You have just taken out a $24,000 car loan with a 7% 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?
You have just taken out a $ 15,000 car loan with a 4 %​APR, compounded monthly....
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.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT