Question

All the remaining questions are based on the following scenario:

You take out an $19,000.00 car loan that calls for 48 monthly payments at an APR of 6.7%. Complete an amortization table and answer the following questions.

You must complete the amortization table to answer the questions (otherwise your answers could be off due to rounding error... all totals are based on intermediate numbers that have not been rounded). The answer you enter must be rounded (correctly) to two decimal places. You do not need to include commas or dollar signs in your answer. For example, the end balance after 41 months would be entered as 3096.82.

5. What is your loan payment?

6. What is the total interest paid on the loan?

7. What is the total amount you paid on the loan?

8. What is the balance on the loan at the end of 48 months?

Answer 1

5)

The loan payment is calculated using the following equation

Monthly payment on the loan = $ 452.34

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The amortization schedule on the loan is done making use of excel.

6)

Total interest paid on the loan = $ 452.34 48 months - $ 19000

Total interest paid on the loan = $ 2712.25

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7)

Total amount paid on the loan = $ 21712.32

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8)

Balance of the loan at the end of 48 months = -0.07