Question

Today is July 1, 2000. You've just borrowed $10,000 to purchase a car. The terms of the loan are 6% APR with monthly compounding It's an exceptionally short term loan- only 6 months total in duration. In addition, you'1l only make payments 2, 4, and 6 months from today. The first payment will be $30. The second payment (made 4 months from today) will be $300. Part A) Determine the size of the last payment (made 6 months from today) Parts B/C/D) Complete the amortization schedule given below. Enter the values into PolyLearn which correspond to the three boxes (labeled as Parts B/C/D) below: Principal at End of Month Month # Principal Begin of Month Interest Due Payment Change in Made Principal 0.00 30.00 0.00 300.00 0.00 10,000.00 10,050.00 10,050.00 50.35 -249.40 49.36 Part B 9,871.20 9,920.56 0.00 4 Part C 9,920.56 Part D

Answer 1

Statement showing loan repayment schedule

Month	Principal at beginning of month	Interest Due @ 0.5% PM	Payment made	Change in principal	Principal at end of month
	a	b =a*0.5%	c	d=b-c	a+d
1	10000	50	0	50	10050
2	10050	50.25	30	20.25	10070.25
3	10070.25	50.35	0	50.35	10120.60
4	10120.60	50.60	300	-249.40	9871.20
5	9871.20	49.36	0	49.36	9920.56
6	9920.56	49.60	9970.16	-9920.56	0.00