Question

You have just purchased a car and taken out a $50,000 loan. The loan has a​ five-year term with monthly payments and an APR of 6.0%.

How much will you pay in​ interest, and how much will you pay in​ principal, during the 1st, 2nd, and 12th month?

How much will you pay in​ interest, and how much will you pay in​ principal, at the end of the 4th year​?

How much will you pay in​ interest, and how much will you pay in​ principal, for the 1st year?

Solve using a BA II, record all key strokes you used.

Answer 1

Tenure=12*5=60 month, monthly interest rate=6%/12=0.5%

Your Monthly payment would be $966.64. Calculation given below

Below is the amortization schedule:

Month	Principal	Interest	Principal+Total	Monthly Payment	Outstanding Principal	Principal Paid	Interest Paid
0	50000	0	50000	0	50000	0	0
1	50000	250	50250	($966.64)	$49,283.36	$716.64	$250.00
2	49283.36	246.4168	49529.77672	($966.64)	48563.13665	720.2232769	246.4168
3	48563.14	242.8157	48805.95233	($966.64)	47839.31225	723.8243932	242.815683
4	47839.31	239.1966	48078.50881	($966.64)	47111.86874	727.4435152	239.196561
5	47111.87	235.5593	47347.42808	($966.64)	46380.78801	731.0807328	235.559344
6	46380.79	231.9039	46612.69195	($966.64)	45646.05187	734.7361364	231.90394
7	45646.05	228.2303	45874.28213	($966.64)	44907.64205	738.4098171	228.230259
8	44907.64	224.5382	45132.18026	($966.64)	44165.54019	742.1018662	224.53821
9	44165.54	220.8277	44386.36789	($966.64)	43419.72781	745.8123755	220.827701
10	43419.73	217.0986	43636.82645	($966.64)	42670.18637	749.5414374	217.098639
11	42670.19	213.3509	42883.5373	($966.64)	41916.89723	753.2891446	213.350932
12	41916.9	209.5845	42126.48171	($966.64)	41159.84164	757.0555903	209.584486
13	41159.84	205.7992	41365.64085	($966.64)	40399.00077	760.8408683	205.799208
14	40399	201.995	40600.99577	($966.64)	39634.3557	764.6450726	201.995004
15	39634.36	198.1718	39832.52748	($966.64)	38865.8874	768.468298	198.171778
16	38865.89	194.3294	39060.21684	($966.64)	38093.57676	772.3106395	194.329437
17	38093.58	190.4679	38284.04464	($966.64)	37317.40457	776.1721927	190.467884
18	37317.4	186.587	37503.99159	($966.64)	36537.35151	780.0530536	186.587023
19	36537.35	182.6868	36720.03827	($966.64)	35753.39819	783.9533189	182.686758
20	35753.4	178.767	35932.16519	($966.64)	34965.52511	787.8730855	178.766991
21	34965.53	174.8276	35140.35273	($966.64)	34173.71266	791.8124509	174.827626
22	34173.71	170.8686	34344.58122	($966.64)	33377.94114	795.7715132	170.868563
23	33377.94	166.8897	33544.83085	($966.64)	32578.19077	799.7503707	166.889706
24	32578.19	162.891	32741.08173	($966.64)	31774.44165	803.7491226	162.890954
25	31774.44	158.8722	31933.31386	($966.64)	30966.67378	807.7678682	158.872208
26	30966.67	154.8334	31121.50715	($966.64)	30154.86708	811.8067076	154.833369
27	30154.87	150.7743	30305.64141	($966.64)	29339.00133	815.8657411	150.774335
28	29339	146.695	29485.69634	($966.64)	28519.05626	819.9450698	146.695007
29	28519.06	142.5953	28661.65155	($966.64)	27695.01147	824.0447951	142.595281
30	27695.01	138.4751	27833.48653	($966.64)	26866.84645	828.1650191	138.475057
31	26866.85	134.3342	27001.18068	($966.64)	26034.54061	832.3058442	134.334232
32	26034.54	130.1727	26164.71331	($966.64)	25198.07323	836.4673734	130.172703
33	25198.07	125.9904	25324.0636	($966.64)	24357.42352	840.6497103	125.990366
34	24357.42	121.7871	24479.21064	($966.64)	23512.57056	844.8529589	121.787118
35	23512.57	117.5629	23630.13342	($966.64)	22663.49334	849.0772237	117.562853
36	22663.49	113.3175	22776.81081	($966.64)	21810.17073	853.3226098	113.317467
37	21810.17	109.0509	21919.22158	($966.64)	20952.58151	857.5892228	109.050854
38	20952.58	104.7629	21057.34441	($966.64)	20090.70434	861.8771689	104.762908
39	20090.7	100.4535	20191.15786	($966.64)	19224.51778	866.1865548	100.453522
40	19224.52	96.12259	19320.64037	($966.64)	18354.0003	870.5174876	96.1225889
41	18354	91.77	18445.7703	($966.64)	17479.13022	874.870075	91.7700015
42	17479.13	87.39565	17566.52587	($966.64)	16599.8858	879.2444254	87.3956511
43	16599.89	82.99943	16682.88522	($966.64)	15716.24515	883.6406475	82.999429
44	15716.25	78.58123	15794.82637	($966.64)	14828.1863	888.0588507	78.5812257
45	14828.19	74.14093	14902.32723	($966.64)	13935.68715	892.499145	74.1409315
46	13935.69	69.67844	14005.36559	($966.64)	13038.72551	896.9616407	69.6784358
47	13038.73	65.19363	13103.91914	($966.64)	12137.27906	901.4464489	65.1936276
48	12137.28	60.6864	12197.96546	($966.64)	11231.32538	905.9536812	60.6863953
49	11231.33	56.15663	11287.48201	($966.64)	10320.84193	910.4834496	56.1566269
50	10320.84	51.60421	10372.44614	($966.64)	9405.806065	915.0358668	51.6042097
51	9405.806	47.02903	9452.835096	($966.64)	8486.195019	919.6110461	47.0290303
52	8486.195	42.43098	8528.625994	($966.64)	7561.985918	924.2091014	42.4309751
53	7561.986	37.80993	7599.795847	($966.64)	6633.155771	928.8301469	37.8099296
54	6633.156	33.16578	6666.32155	($966.64)	5699.681473	933.4742976	33.1657789
55	5699.681	28.49841	5728.179881	($966.64)	4761.539804	938.1416691	28.4984074
56	4761.54	23.8077	4785.347503	($966.64)	3818.707427	942.8323775	23.807699
57	3818.707	19.09354	3837.800964	($966.64)	2871.160887	947.5465393	19.0935371
58	2871.161	14.3558	2885.516692	($966.64)	1918.876615	952.284272	14.3558044
59	1918.877	9.594383	1928.470998	($966.64)	961.8309219	957.0456934	9.59438308
60	961.8309	4.809155	966.6400765	($966.64)	8.29914E-12	961.8309219	4.80915461

In the 1st month $716.64 as principal and $250 as interest has been paid

In the 2nd month $720.22 as principal and $246.41 as interest has been paid

In the 12th month $757.05 as principal and $209.58 as interest has been paid

At the end of 4 year i.e upto 48th month you will $ 38768.67 as principal and $7630.04 as interest has been paid

For the 1st year i.e upto 12th month you will $ 8840.16 as principal and $2759.52 as interest has been paid