Question

Using the ENGR 315 Automobile Loan Payment Calculator posted, calculate the monthly payment required for a 60-month new automobile loan made by the lender at 4.74% annual percentage rate (APR) if the car buyer borrowed $35,742. Save the resulting Excel spreadsheet file, as a PDF, presenting your payment calculations

Answer 1

Monthly interest = 0.395% or 0.00395

Monthly payment = P[i(1 + i)ⁿ / {(1 + i)ⁿ - 1}]

                             = 35742[0.00395(1 + 0.00395)⁶⁰ / {(1 + 0.00395)⁶⁰ - 1}]

                             = 35742(0.005004 / 0.26685)

                              = $670.25

Loan Amount	35742
Loan Term (Years)	5.00
Payments Per Year	12
Rate of Interest	4.740%
Monthly Installment	670.25
S.No	Monthly Installment	Interest	Principal	Balance
0				35742.00
1	670.25	141.18	529.07	35212.93
2	670.25	139.09	531.16	34681.78
3	670.25	136.99	533.25	34148.53
4	670.25	134.89	535.36	33613.17
5	670.25	132.77	537.47	33075.69
6	670.25	130.65	539.60	32536.09
7	670.25	128.52	541.73	31994.37
8	670.25	126.38	543.87	31450.50
9	670.25	124.23	546.02	30904.48
10	670.25	122.07	548.17	30356.31
11	670.25	119.91	550.34	29805.97
12	670.25	117.73	552.51	29253.45
13	670.25	115.55	554.70	28698.76
14	670.25	113.36	556.89	28141.87
15	670.25	111.16	559.09	27582.79
16	670.25	108.95	561.29	27021.49
17	670.25	106.73	563.51	26457.98
18	670.25	104.51	565.74	25892.24
19	670.25	102.27	567.97	25324.27
20	670.25	100.03	570.22	24754.06
21	670.25	97.78	572.47	24181.59
22	670.25	95.52	574.73	23606.86
23	670.25	93.25	577.00	23029.86
24	670.25	90.97	579.28	22450.58
25	670.25	88.68	581.57	21869.01
26	670.25	86.38	583.86	21285.15
27	670.25	84.08	586.17	20698.98
28	670.25	81.76	588.49	20110.49
29	670.25	79.44	590.81	19519.68
30	670.25	77.10	593.14	18926.54
31	670.25	74.76	595.49	18331.05
32	670.25	72.41	597.84	17733.22
33	670.25	70.05	600.20	17133.02
34	670.25	67.68	602.57	16530.44
35	670.25	65.30	604.95	15925.49
36	670.25	62.91	607.34	15318.15
37	670.25	60.51	609.74	14708.41
38	670.25	58.10	612.15	14096.26
39	670.25	55.68	614.57	13481.70
40	670.25	53.25	616.99	12864.70
41	670.25	50.82	619.43	12245.27
42	670.25	48.37	621.88	11623.40
43	670.25	45.91	624.33	10999.06
44	670.25	43.45	626.80	10372.26
45	670.25	40.97	629.28	9742.99
46	670.25	38.48	631.76	9111.22
47	670.25	35.99	634.26	8476.97
48	670.25	33.48	636.76	7840.21
49	670.25	30.97	639.28	7200.93
50	670.25	28.44	641.80	6559.12
51	670.25	25.91	644.34	5914.79
52	670.25	23.36	646.88	5267.90
53	670.25	20.81	649.44	4618.47
54	670.25	18.24	652.00	3966.46
55	670.25	15.67	654.58	3311.88
56	670.25	13.08	657.16	2654.72
57	670.25	10.49	659.76	1994.96
58	670.25	7.88	662.37	1332.59
59	670.25	5.26	664.98	667.61
60	670.25	2.64	667.61	0.00