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Question
In: Accounting
You just purchased a car for $50,000. You paid $10,000 for the down payment and the rest is the loan. The car loan is for 36 months at an annual
You just purchased a car for $50,000. You paid $10,000 for the down payment and the rest is the loan. The car loan is for 36 months at an annual interest rate of 6%. The loan payments should be made at the end of each month.
A. How much is the monthly payment on the loan? Total monthly payment is ________.
B. How much of the monthly payment is the interest payment in month 17?The interest amount is ________.
C. How much of the monthly payment is the payment of principal in month 9?The principal payment is ________.
Solutions
Expert Solution
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Payment Formula |
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Payment Formula |
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Interest Formula |
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Interest Formula |
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PMT(rate,period,-borrowing) |
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PMT(rate,period,-borrowing) |
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A.
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payment
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$1,216.88
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Formula
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=PMT(6%/12,36,-(50000-10000)) |
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B. |
Interest |
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$ 115.53 |
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Formula
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=-CUMIPMT(6%/12,36,(50000-10000),17,17,0) |
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C. |
Principal |
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$1,058.27 |
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Formula |
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=-CUMPRINC(6%/12,36,(50000-10000),9,9,0) |
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A.
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payment
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$1,216.88
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Formula
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=PMT(6%/12,36,-(50000-10000)) |
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