Question

A commercial bank will loan you $17,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan is 6% of the unpaid balance. The amount of the monthly payments is $775.61. What is the loan balance after 18 months? A)8,915.70 B) $4,653.66 C) $4,573.29 D) 4,375.00

Answer 1

Periods Beginning balance Total payment Interest Paid Principal Paid Balance COWNIA $17,500.00 $16,811.89 $16, 120.34 $15,425.33 $14,726.85 $14,024.87 $13,319.38 $12,610.37 $11,897.81 $11,181.69 $10,461.99 $9,738.69 $9.011.77 $8,281.22 $7,547.01 $6,809.14 $6,067.57 $5,322.30 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $775.61 $87.50 $84.06 | $80.60 $77.13 | $73.63 $70.12 $66.60 $63.05 $59.49 $55.91 $52.31 $48.69 $45.06 $41.41 $37.74 $34.05 $30.34 $26.61 $688.11 $16,811.89 $691.55 $16, 120.34 $695.01 | $15,425.33 $698.48 $14,726.85 $701.98 $14,024.87 $705.49 $13,319.38 $709.01 $12.610.37 $712.56 $11,897.81 $716.12 $11,181.69 $719.70 $10,461.99 $723.30 $9,738.69 $726.92 $9,011.77 $730.55 $8,281.22 $734.20 $7,547.01 $737.88 $6,809.14 $741.57 | $6,067.57 $745.27 $5,322.30 $749.00 $4,573.30