In: Finance
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? principal, during the fourth year? (i.e., between three and four years from? now)?
?(Note: Be careful not to round any intermediate steps less than six decimal? places.)
Loan | 40000 | |||
Monthly Payment | $778.90 | |||
Rate | 0.00525 | |||
Months | 60 | |||
Month | EMI | Interest Paid | Principal Paid | Loan Outstanding |
1 | $778.90 | 210 | $568.90 | $39,431.10 |
2 | $778.90 | 207.0133 | $571.89 | $38,859.20 |
3 | $778.90 | 204.0108 | $574.89 | $38,284.31 |
4 | $778.90 | 200.9926 | $577.91 | $37,706.40 |
5 | $778.90 | 197.9586 | $580.95 | $37,125.45 |
6 | $778.90 | 194.9086 | $584.00 | $36,541.46 |
7 | $778.90 | 191.8427 | $587.06 | $35,954.40 |
8 | $778.90 | 188.7606 | $590.14 | $35,364.25 |
9 | $778.90 | 185.6623 | $593.24 | $34,771.01 |
10 | $778.90 | 182.5478 | $596.36 | $34,174.66 |
11 | $778.90 | 179.4169 | $599.49 | $33,575.17 |
12 | $778.90 | 176.2696 | $602.63 | $32,972.53 |
13 | $778.90 | 173.1058 | $605.80 | $32,366.74 |
14 | $778.90 | 169.9254 | $608.98 | $31,757.76 |
15 | $778.90 | 166.7282 | $612.18 | $31,145.58 |
16 | $778.90 | 163.5143 | $615.39 | $30,530.19 |
17 | $778.90 | 160.2835 | $618.62 | $29,911.57 |
18 | $778.90 | 157.0357 | $621.87 | $29,289.70 |
19 | $778.90 | 153.7709 | $625.13 | $28,664.57 |
20 | $778.90 | 150.489 | $628.42 | $28,036.15 |
21 | $778.90 | 147.1898 | $631.71 | $27,404.44 |
22 | $778.90 | 143.8733 | $635.03 | $26,769.41 |
23 | $778.90 | 140.5394 | $638.36 | $26,131.04 |
24 | $778.90 | 137.188 | $641.72 | $25,489.33 |
25 | $778.90 | 133.819 | $645.09 | $24,844.24 |
26 | $778.90 | 130.4323 | $648.47 | $24,195.77 |
27 | $778.90 | 127.0278 | $651.88 | $23,543.89 |
28 | $778.90 | 123.6054 | $655.30 | $22,888.59 |
29 | $778.90 | 120.1651 | $658.74 | $22,229.86 |
30 | $778.90 | 116.7067 | $662.20 | $21,567.66 |
31 | $778.90 | 113.2302 | $665.67 | $20,901.98 |
32 | $778.90 | 109.7354 | $669.17 | $20,232.81 |
33 | $778.90 | 106.2223 | $672.68 | $19,560.13 |
34 | $778.90 | 102.6907 | $676.21 | $18,883.92 |
35 | $778.90 | 99.14058 | $679.76 | $18,204.16 |
36 | $778.90 | 95.57182 | $683.33 | $17,520.82 |
37 | $778.90 | 91.98432 | $686.92 | $16,833.90 |
38 | $778.90 | 88.37799 | $690.53 | $16,143.38 |
39 | $778.90 | 84.75273 | $694.15 | $15,449.23 |
40 | $778.90 | 81.10844 | $697.80 | $14,751.43 |
41 | $778.90 | 77.44501 | $701.46 | $14,049.97 |
42 | $778.90 | 73.76235 | $705.14 | $13,344.83 |
43 | $778.90 | 70.06035 | $708.84 | $12,635.99 |
44 | $778.90 | 66.33892 | $712.57 | $11,923.42 |
45 | $778.90 | 62.59796 | $716.31 | $11,207.11 |
46 | $778.90 | 58.83735 | $720.07 | $10,487.05 |
47 | $778.90 | 55.057 | $723.85 | $9,763.20 |
48 | $778.90 | 51.2568 | $727.65 | $9,035.55 |
49 | $778.90 | 47.43665 | $731.47 | $8,304.08 |
50 | $778.90 | 43.59645 | $735.31 | $7,568.78 |
51 | $778.90 | 39.73608 | $739.17 | $6,829.61 |
52 | $778.90 | 35.85545 | $743.05 | $6,086.56 |
53 | $778.90 | 31.95444 | $746.95 | $5,339.61 |
54 | $778.90 | 28.03295 | $750.87 | $4,588.74 |
55 | $778.90 | 24.09088 | $754.81 | $3,833.93 |
56 | $778.90 | 20.12811 | $758.78 | $3,075.15 |
57 | $778.90 | 16.14454 | $762.76 | $2,312.39 |
58 | $778.90 | 12.14005 | $766.76 | $1,545.63 |
59 | $778.90 | 8.114536 | $770.79 | $774.84 |
60 | $778.90 | 4.067891 | $774.84 | $0.00 |
Interest during first month=210
Interest during second month=207.0133
Interest paid during first year=1963.697336
Principal during first month=568.90
Principal during second month=571.89
Principal paid during first year=5825.34
Interest paid during fourth year=861.579
Principal during fourth year=8485.27