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You have just purchased a car and taken out a $35,000 loan. The loan has a?...

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Finance

You have just purchased a car and taken out a $35,000 loan. Theloan has a? five-year term with monthly payments and an APR of6.1%.

a. How much will you pay in? interest, and how much will you payin? principal, during the first? month, second? month, and first?year? (Hint: Compute the loan balance after one? month, two?months, and one? year.)

b. How much will you pay in? interest, and how much will you payin? principal, during the fourth year? (i.e., between three andfour years from? now)? ?(Note: Be careful not to round anyintermediate steps less than six decimal? places.)

Answer & Explanation Solved by verified expert
3.6 Ratings (471 Votes)
Answer aFirst let us calculate the monthly paymentsLoan Amount 35000Month Interest APR 12 61 12Duration 5 years 5 12 60 monthsTo get monthly payment we will use PMT function PMT rate nper pv fv type PMT 6112 60 35000 0 0 678276704Monthly payment 67828FirstMonthInterest paid 35000 6112    See Answer
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Transcribed Image Text

You have just purchased a car and taken out a $35,000 loan. Theloan has a? five-year term with monthly payments and an APR of6.1%.a. How much will you pay in? interest, and how much will you payin? principal, during the first? month, second? month, and first?year? (Hint: Compute the loan balance after one? month, two?months, and one? year.)b. How much will you pay in? interest, and how much will you payin? principal, during the fourth year? (i.e., between three andfour years from? now)? ?(Note: Be careful not to round anyintermediate steps less than six decimal? places.)

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