Using Excel You have just taken a car loan of $15,000. The loan is for 48...

Using Excel

You have just taken a car loan of $15,000. The loan is for 48 months at an annual interest rate of 15% (which the bank translates to a monthly rate of 15%/12 = 1.25%). The 48 payments (to be made at the end of each of the next 48 months) are all equal. a) Calculate the monthly payment on the loan.

b) Create a loan table: For each month, calculate the principal remaining on the loan at the beginning of the month and the split of that month’s payment between interest and repayment of principal.

c) Show that the principal at the beginning of each month is the present value of the remaining loan payments at the loan interest rate (use either NPV or the PV functions).

Solutions

Expert Solution

Working/Formula:

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

You have just taken out a $15,000 car loan with a 6% APR, compounded monthly. The...

You have just taken out a $15,000 car loan with a 6% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? (Note: Be careful not to round any intermediate steps less than six decimal places.) When you make your first payment,$___will go toward the principal of the loan and $___ will...

You have just purchased a car and taken out a $ 48 comma 000$48,000 loan. The...

You have just purchased a car and taken out a $ 48 comma 000$48,000 loan. The loan has a five-year term with monthly payments and an APR of 5.8 %5.8%. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will...

You have just purchased a car and taken out a $46000 loan. The loan has a...

You have just purchased a car and taken out a $46000 loan. The loan has a five-year term with monthly payments and an APR of 6.5 % a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in...

You have just purchased a car and taken out a $50,000 loan. The loan has a...

You have just purchased a car and taken out a $50,000 loan. The loan has a 5-year term with monthly payments and an APR of 6%. How much will you pay in interest, and how much will you pay in principle, during the first month and second month? (Hint: construct an amortization table to show the breakdown of interest and principal paid in the first two months).

You have just purchased a car and taken out a $40,000 loan. The loan has a?...

You have just purchased a car and taken out a $40,000 loan. The loan has a? five-year term with monthly payments and an APR of 6.3 % a. How much will you pay in? interest, and how much will you pay in? principal, during the first? month, second? month, and first? year? (Hint: Compute the loan balance after one? month, two? months, and one? year.) b. How much will you pay in? interest, and how much will you pay in?...

You have just purchased a car and taken out a $41,000 loan. The loan has a...

You have just purchased a car and taken out a $41,000 loan. The loan has a five-year term with monthly payments and an APR of 6.1%. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in principal,...

You have just purchased a car and taken out a $39,000 loan. The loan has a...

You have just purchased a car and taken out a $39,000 loan. The loan has a five-year term with monthly payments and an APR of 5.5% . a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in...

You have just purchased a car and taken out a $37,000 loan. The loan has a...

You have just purchased a car and taken out a $37,000 loan. The loan has a five-year term with monthly payments and an APR of 6.1%. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in principal,...

You have just purchased a car and taken out a $35,000 loan. The loan has a...

You have just purchased a car and taken out a $35,000 loan. The loan has a five-year term with monthly payments and an APR of 5.7%. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in principal,...

You have just purchased a car and taken out a $ 50000 loan. The loan has...

You have just purchased a car and taken out a $ 50000 loan. The loan has a five-year term with monthly payments and an APR of 6.3%. a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.) b. How much will you pay in interest, and how much will you pay in...

Subjects