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In: Finance

After starting your first full-time job out of college, you decide to buy a new car...

After starting your first full-time job out of college, you decide to buy a new car for $12,000. Using Excel, create a complete amortization table for this car-loan: You make 36 equal end- of- month payments. The discount rate is 7.25% compounded monthly. How much would you owe after the 15th payment is made?

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Expert Solution

Let us calculate using excel formula

Monthly Payment is computed using excel function "PMT"

Principal Payment is computed using excel function "PPMT"

Interest Payment = Monthly Payment - Principal Payment

jeff jeffy answered 16 hours ago
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