You purchased a new 2020 Honda Accord. You borrowed $30,710 to make the purchase. A bank...

You purchased a new 2020 Honda Accord. You borrowed $30,710 to make the purchase. A bank lends you the money at an annual fixed interest rate of 3.75% for 5 years. The terms of the amortization loan include making monthly payments. Build the loan amortization schedule in Excel

Expert Solution

We have to compute first monthly installment.
We have to use financial calculator to compute
put in calculator

FV		0
PV		-30,710
I	3.75%/12	0.3125%
N	5*12	60

Compute PMT		$562.11


Amortization table

i	ii	iii=i*0.3125%	iv	v=iv-iii	vi=ii-v
Period/Month	Beginning balance	Interest @0.3125%	Installment	Principle paid	Closing balance
0					30,710
1	30,710.00	95.97	562.11	466.14	30,243.86
2	30,243.86	94.51	562.11	467.60	29,776.25
3	29,776.25	93.05	562.11	469.06	29,307.19
4	29,307.19	91.58	562.11	470.53	28,836.66
5	28,836.66	90.11	562.11	472.00	28,364.66
6	28,364.66	88.64	562.11	473.47	27,891.19
7	27,891.19	87.16	562.11	474.95	27,416.24
8	27,416.24	85.68	562.11	476.44	26,939.80
9	26,939.80	84.19	562.11	477.93	26,461.87
10	26,461.87	82.69	562.11	479.42	25,982.45
11	25,982.45	81.20	562.11	480.92	25,501.54
12	25,501.54	79.69	562.11	482.42	25,019.11
13	25,019.11	78.18	562.11	483.93	24,535.19
14	24,535.19	76.67	562.11	485.44	24,049.74
15	24,049.74	75.16	562.11	486.96	23,562.79
16	23,562.79	73.63	562.11	488.48	23,074.31
17	23,074.31	72.11	562.11	490.01	22,584.30
18	22,584.30	70.58	562.11	491.54	22,092.76
19	22,092.76	69.04	562.11	493.07	21,599.69
20	21,599.69	67.50	562.11	494.61	21,105.08
21	21,105.08	65.95	562.11	496.16	20,608.92
22	20,608.92	64.40	562.11	497.71	20,111.21
23	20,111.21	62.85	562.11	499.27	19,611.94
24	19,611.94	61.29	562.11	500.83	19,111.11
25	19,111.11	59.72	562.11	502.39	18,608.72
26	18,608.72	58.15	562.11	503.96	18,104.76
27	18,104.76	56.58	562.11	505.54	17,599.23
28	17,599.23	55.00	562.11	507.12	17,092.11
29	17,092.11	53.41	562.11	508.70	16,583.41
30	16,583.41	51.82	562.11	510.29	16,073.12
31	16,073.12	50.23	562.11	511.88	15,561.23
32	15,561.23	48.63	562.11	513.48	15,047.75
33	15,047.75	47.02	562.11	515.09	14,532.66
34	14,532.66	45.41	562.11	516.70	14,015.96
35	14,015.96	43.80	562.11	518.31	13,497.65
36	13,497.65	42.18	562.11	519.93	12,977.72
37	12,977.72	40.56	562.11	521.56	12,456.16
38	12,456.16	38.93	562.11	523.19	11,932.97
39	11,932.97	37.29	562.11	524.82	11,408.15
40	11,408.15	35.65	562.11	526.46	10,881.68
41	10,881.68	34.01	562.11	528.11	10,353.58
42	10,353.58	32.35	562.11	529.76	9,823.82
43	9,823.82	30.70	562.11	531.41	9,292.40
44	9,292.40	29.04	562.11	533.07	8,759.33
45	8,759.33	27.37	562.11	534.74	8,224.59
46	8,224.59	25.70	562.11	536.41	7,688.18
47	7,688.18	24.03	562.11	538.09	7,150.09
48	7,150.09	22.34	562.11	539.77	6,610.32
49	6,610.32	20.66	562.11	541.46	6,068.86
50	6,068.86	18.97	562.11	543.15	5,525.72
51	5,525.72	17.27	562.11	544.85	4,980.87
52	4,980.87	15.57	562.11	546.55	4,434.32
53	4,434.32	13.86	562.11	548.26	3,886.07
54	3,886.07	12.14	562.11	549.97	3,336.10
55	3,336.10	10.43	562.11	551.69	2,784.41
56	2,784.41	8.70	562.11	553.41	2,231.00
57	2,231.00	6.97	562.11	555.14	1,675.86
58	1,675.86	5.24	562.11	556.88	1,118.98
59	1,118.98	3.50	562.11	558.62	560.36
60	560.36	1.75	562.11	560.36	(0.00)

jeff jeffy answered 1 year ago

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