Question

A recent college graduate buys a new car by borrowing $20,000 at 7.2%, compounded monthly, for 4 years. She decides to pay $501 instead of the monthly payment required by the loan. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) How much extra did she pay per month? (Round your answer to the nearest cent.) (b) How many $501 payments will she make to pay off the loan? (Round your answer up to the next whole number.) payments (c) How much will she save by paying $501 per month rather than the required payment? (Round your answer to the nearest cent.)

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

AS NOTHING WAS MENTIONED, EXCEL IS SUED. NO INTERMEDIATE ROUNDING IS DONE

- 2x PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Calibri -11AA = = = Dr Wrap Text General Ea Copy Paste BI U D- DA E = 5 st Fat Merge Merge & Center - Center $ % % , , .0 .00 Format Painter :.: Conditional Format Cell Formatting as Table Styles Clipboard Font C Alignment Number Styles Insert Delete Format Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Find & Select Cells X379 T U V W X Z AA AB AC AD 7 CAR 20000 7.20% LOAN RATE NO OF MONTHS MONTHLY RATE MONTHLY PAYMENT 48 0.6000% 501 PMT 480.78 (=PMT(X384,X383,-X381)] , 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 EXTRA PAID PER MONTH 20.22 [501-480.78] b NO OF MONTHS TO PAY OFF NO OF MONTHS TO PAY OFF 45.7712212 [=NPER(X384,-X385,X381)] 46 [ROUNDED AS ASKED] TOTAL PAYMENT UNDER 501 TOTAL PAYMENT UNDER 480.78 SAVINGS = 22931.38 [501 X 45.7712212] 23077.58 [480.78 X 48] 146.20 CAP STRU VALUE profit margin loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPO NPER APR CPI ear FVA pva s2 pv, fv, annuity ferences 53 | STATE 56 57 BOU 120% Red -_- ...B 9 . * . *O ENG 24-11-2019