In: Finance
you are planning to borrow $10,000 to buy a new car. the loan is being made to you ag 8.0% annual percentage rate. you will make monthly payment for four years. how mi h of the third monthly payment will go to the paymebt of principal
Monthly rate(M)= | yearly rate/12= | 0.67% | Monthly payment= | 244.13 | |
Month | Beginning balance (A) | Monthly payment | Interest = M*A | Principal paid | Ending balance |
1 | 10000.00 | 244.13 | 66.67 | 177.46 | 9822.54 |
2 | 9822.54 | 244.13 | 65.48 | 178.65 | 9643.89 |
3 | 9643.89 | 244.13 | 64.29 | 179.84 | 9464.06 |
4 | 9464.06 | 244.13 | 63.09 | 181.04 | 9283.02 |
5 | 9283.02 | 244.13 | 61.89 | 182.24 | 9100.78 |
6 | 9100.78 | 244.13 | 60.67 | 183.46 | 8917.32 |
7 | 8917.32 | 244.13 | 59.45 | 184.68 | 8732.64 |
8 | 8732.64 | 244.13 | 58.22 | 185.91 | 8546.73 |
9 | 8546.73 | 244.13 | 56.98 | 187.15 | 8359.58 |
10 | 8359.58 | 244.13 | 55.73 | 188.40 | 8171.18 |
11 | 8171.18 | 244.13 | 54.47 | 189.65 | 7981.52 |
12 | 7981.52 | 244.13 | 53.21 | 190.92 | 7790.60 |
13 | 7790.60 | 244.13 | 51.94 | 192.19 | 7598.41 |
14 | 7598.41 | 244.13 | 50.66 | 193.47 | 7404.94 |
15 | 7404.94 | 244.13 | 49.37 | 194.76 | 7210.18 |
16 | 7210.18 | 244.13 | 48.07 | 196.06 | 7014.11 |
17 | 7014.11 | 244.13 | 46.76 | 197.37 | 6816.75 |
18 | 6816.75 | 244.13 | 45.44 | 198.68 | 6618.06 |
19 | 6618.06 | 244.13 | 44.12 | 200.01 | 6418.05 |
20 | 6418.05 | 244.13 | 42.79 | 201.34 | 6216.71 |
21 | 6216.71 | 244.13 | 41.44 | 202.68 | 6014.03 |
22 | 6014.03 | 244.13 | 40.09 | 204.04 | 5809.99 |
23 | 5809.99 | 244.13 | 38.73 | 205.40 | 5604.60 |
24 | 5604.60 | 244.13 | 37.36 | 206.77 | 5397.83 |
25 | 5397.83 | 244.13 | 35.99 | 208.14 | 5189.69 |
26 | 5189.69 | 244.13 | 34.60 | 209.53 | 4980.15 |
27 | 4980.15 | 244.13 | 33.20 | 210.93 | 4769.23 |
28 | 4769.23 | 244.13 | 31.79 | 212.33 | 4556.89 |
29 | 4556.89 | 244.13 | 30.38 | 213.75 | 4343.14 |
30 | 4343.14 | 244.13 | 28.95 | 215.17 | 4127.97 |
31 | 4127.97 | 244.13 | 27.52 | 216.61 | 3911.36 |
32 | 3911.36 | 244.13 | 26.08 | 218.05 | 3693.30 |
33 | 3693.30 | 244.13 | 24.62 | 219.51 | 3473.80 |
34 | 3473.80 | 244.13 | 23.16 | 220.97 | 3252.83 |
35 | 3252.83 | 244.13 | 21.69 | 222.44 | 3030.38 |
36 | 3030.38 | 244.13 | 20.20 | 223.93 | 2806.46 |
37 | 2806.46 | 244.13 | 18.71 | 225.42 | 2581.04 |
38 | 2581.04 | 244.13 | 17.21 | 226.92 | 2354.11 |
39 | 2354.11 | 244.13 | 15.69 | 228.44 | 2125.68 |
40 | 2125.68 | 244.13 | 14.17 | 229.96 | 1895.72 |
41 | 1895.72 | 244.13 | 12.64 | 231.49 | 1664.23 |
42 | 1664.23 | 244.13 | 11.09 | 233.03 | 1431.20 |
43 | 1431.20 | 244.13 | 9.54 | 234.59 | 1196.61 |
44 | 1196.61 | 244.13 | 7.98 | 236.15 | 960.46 |
45 | 960.46 | 244.13 | 6.40 | 237.73 | 722.73 |
46 | 722.73 | 244.13 | 4.82 | 239.31 | 483.42 |
47 | 483.42 | 244.13 | 3.22 | 240.91 | 242.51 |
48 | 242.51 | 244.13 | 1.62 | 242.51 | 0.00 |
Where | |||||
Interest paid = Beginning balance * Monthly interest rate | |||||
Principal = Monthly payment – interest paid | |||||
Ending balance = beginning balance – principal paid | |||||
Beginning balance = previous Month ending balance |
Percentage of principal in 3rd month = 179.84/244.13 = 73.67%