Question

In: Finance

b. An individual obtains a car loan whim pays $30,000. The loan will he paid off...

b. An individual obtains a car loan whim pays $30,000. The loan will he paid off in 3
years, and payments are made monthly. Interest rate on the loan is 7%, and compounding is monthly.

1. Find the amount of monthly payments to pay the loan off. Provide a complete
amortization schedule of the loan ( this will entail a long table containing 37 rows).
2. Present your work in detail and explain. Provide references for content. (Excel sheet required).

Solutions

Expert Solution

First we need to calculate the monthly payment that would be need to made in order to service the loan, which is also show below

Amortization Schedule is shown below:

jeff jeffy answered 2 years ago
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