Question

Amortization schedule with periodic

payments. Moulton Motors is advertising the following deal on a used Honda​ Accord: ​ "Monthly payments of $221.48 for the next 54 months and this beauty can be​ yours!" The sticker price of the car is $9,400. If you bought the​ car, what interest rate would you be paying in both APR and EAR​ terms? What is the amortization schedule of the first six​ payments?

Answer 1

2 D2 X fi =+B2*$C$9 A B C 1 Payment Beginning balance Total Payment Interest portion Principal portion 1 $ 9,400.00 $ 221.48$ 86.17 | $ 135.31 3 2 $ 9,264.69 $ 221.48 $ 84.93 $ 136.55 3 $ 9,128.14 $ 221.48 $ 83.68 $ 137.80 4 $ 8,990.34 $ 221.48 $ 82.41 $ 139.07 5 $ 8,851.27 $ 221.48 $ 81.14 $ 140.34 7 6 $ 8,710.93 $ 221.48 $ 79.85 $ 141.63 8 9 Interest rate per month 0.92% =RATE(54,-221.48,9400,0,0) 10 APR H Ending balance $ 9,264.69 $ 9,128.14 $ 8,990.34 $8,851.27 $8,710.93 $8,569.31 4 11.00% =C9*12 11.57% =(1+C93-12-1 11 EAR

*Please rate thumbs up