After graduation you decide to buy your first car. You decide you want to get a Toyota because it has a 5 year/50,000 mile warranty. You buy a 2019 Toyota Camry for $35,000 and finance the vehicle through a Bank. Today’s new car loans are 4.29% APR. a. (2 points) If you finance this car for 66 months, what is your monthly payment? b Create an amortization table showing monthly payment, monthly interest and monthly principle paid. After the first year (12 months), how much interest have you paid?
Answer:
(a) Monthly payment of loan=$596.27 Details as follows
(b) Amortization schedule as follows:
Total interest paid after 12 months is $1389 as shown in the colored raw of amortization schedule above (sum of interest component during the first 12 months).
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