Suppose that under the Plan of Repayment one should pay off the debt in a...
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Suppose that under the Plan of Repayment one should pay off the debt in a number of equal end-of-month installments(principal and interest). This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $20,000 on the purchase of a new automobile, and the annual interest rate is 12% (1% per month).
a. Monthly payments over a 36-month loan period will be how much?
b. How much interest and principal will be paid within three month of this loan?
a. The monthly payment over a 36-month
loan period is $664.29 (i got this part correct) (Round to the nearest cent.)
b. Fill in the table below. (Round to the nearest cent.)
| Payment Number | Interest Payment | Principal Repayment | Remaining Loan Balance |
| 1 | $200.00 | $464.29 | $ |
| 2 | $ | $ | $ |
| 3 | $ | $ | $ The parts filled in are the only ones I got correct, I thought the other ones were but it is telling me otherwise. Thanks in advance for the help
|
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