You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly payment on the loan is $527.19. Assume that right after you make your 50th payment, the balance of the loan is $5,083.64. How much of your next payment goestoward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. (Note: Be careful not to round any intermediate steps less than six decimal places.)The amount that goes towards interest is $. (Round to the nearest cent.)C

A loan refers to a contract between two parties where money is forwarded by one party to the other…

Answered: You have taken out a 60-month, $26,000…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Calculating interest and APR of installment loan. Assuming that interest is the only finance charge, how much interest would be paid on a 5,000 installment loan to be repaid in 36 monthly installments of 166.10? What is the APR on this loan?
You have taken out a 60-month, $27,000 car loan with an APR of 7%, compounded monthly. The monthly payment on the loan is $534.63. Assume that right after you make your 50th payment, the balance of the loan is $5,178.70. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. The amount that goes towards interest is $nothing. (Round to the nearest cent.) The amount that goes towards the principal is $nothing. (Round to the nearest cent.) Compare this with the prinicipal and interest paid in the first month's payment. (Select the best choice below.) A. In the first month, the amount that goes towards principal is $377.13 and toward interest is $157.50. Therefore, you can see that over time, as you pay down the principal of the loan, more of your payment has to go to cover interest and less of your payment can go towards reducing the…
You have taken out a 60-month, $26,000 car loan with an APR of 6%, compounded monthly. The monthly payment on the loan is $502.65. Assume that right after you make your 50th payment, the balance of the loan is $4,890.99. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. The amount that goes towards interest is $ . (Round to the nearest cent.) The amount that goes towards the principal is $. (Round to the nearest cent.) Compare this with the prinicipal and interest paid in the first month's payment. (Select the best choice below.) O A. In the first month, the amount that goes towards principal is $372.65 and toward interest is $130.00. Therefore, you can see that over time, as you pay down the principal of the loan, less of your payment has to go to cover interest and more of your payment can go towards reducing the principal. O B. In the first month, the amount that…
Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments are $987 per month, and the total finance charge is $9,432. After 25 months, you decide to pay off the loan. After calculating the finance charge rebate, find your loan payoff (in $).
Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening? The amount that goes toward interest is $ (Round to the nearest cent.)
Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening? The amount that goes toward interest is $ 94.81. (Round to the nearest cent.) The amount that goes toward the principal is S (Round to the nearest cent.)
Suppose you take out an auto loan for $25,500 over a period of six years at an APR of 7.5%. Determine your monthly payments, the total amount paid, and the percent paid toward interest.

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