You have an new amortizing car loan of $20,000 and the loan rate is 3% per...
You have an new amortizing car loan of $20,000 and the loan rate is 3% per year. If your annual loan payment is $2,400, how much of your second payment goes to paying loan interest?
Homework Answers
| $546 of second payment goes to paying loan interest | |||||
| Statement showing Computations | |||||
| Year | Beginning Balance | Annual loan payment | Interest at 3% | Principal repayment | Ending balance |
| 1.00 | 20,000.00 | 2,400.00 | 600.00 | 1,800.00 | 18,200.00 |
| 2.00 | 18,200.00 | 2,400.00 | 546.00 | 1,854.00 | 16,346.00 |
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