Question

On September 1, 2013, Susan Chao bought a motorcycle for $24,000. She paid $1,100 down and financed the balance with a five-year loan at an APR of 6.6 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2013). Two years later, at the end of October 2015, Susan got a new job and decided to pay off the loan.

  

If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2015? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

fe date B9 cost of motorbike $24,000 $1,100 downpayment amount financed $2,900 4 monthly installment $449.14 loan amortization schedule principal interest installment payment date loan balance expense repayment 01 September 2013 01 October 2013 01 November 2013 01 December 2013 $22,900.00 10 $449.14 $125.95 $323.19 $324.97 $326.75 $22,576.81 11 $449.14 $124.17 $22,251.85 $21,925.09 12 $449.14 $449.14 $122.39 13 01 January 2014 01 February 2014 01 March 2014 01 April 2014 $120.59 $328.55 $21,596.54 14 $449.14 $118.78 $330.36 $21,266.19 $20,934.01 $20,600.01 $20,264.17 15 $449.14 $116.96 $332.17 16 $449.14 $449.14 $115.14 $334.00 17 $113.30 $335.84 $337.69 $339.54 18 01 May 2014 $449.14 $449.14 $111.45 $19,926.49 $19,586.94 $19,245.53 $18,902.25 $18,557.07 $18,210.00 01 June 2014 19 01 July 2014 01 August 2014 $109.60 20 $449.14 $449.14 $107.73 $105.85 $341.41 21 01 September 2014 01 October 2014 01 November 2014 $343.29 22 $449.14 $103.96 $345.18 23 $449.14 $102.06 $347.07 24 $449.14 $100.15 $348.98 $17,861.01 01 December 2014 25 01 January 2015 01 February 2015 01 March 2015 $449.14 $98.24 $350.90 $352.83 $17,510.11 26 $449.14 $449.14 $96.31 $17,157.28 27 $94.37 $354.77 $356.72 $16,802.50 28 $449.14 $92.41 $90.45 $16,445.78 01 April 2015 29 01 May 2015 $449.14 $449.14 $358.69 $16,087.09 $15,726.43 30 $88.48 $360.66 $362.64 31 01 June 2015 01 July 2015 01 August 2015 $86.50 $449.14 $449.14 $15,363.79 32 $84.50 $364.64 $14,999.15 33 01 September 2015 01 October 2015 $449.14 $449.14 $82.50 $366.64 $14,632.51 $14,263.85 $13,893.17 34 $80.48 $368.66 $370.69 35 $449.14 $78.45 01 November 2015 36 37 loan balance on November 1, 2015 $13,893.17 38 $138.93 prepayment penalty @ 1% of loan balance 39 $14,032.10 total amount she must pay to the bank 40 41 42 43 2. 3.

For formulas and calculations, refer to the image below -

B9 date A. cost of motorbike 24000 downpayment 1100 amount financed =D2-D3 4 %3D monthly installment =PMT(6.6%/12,5*12,-D4,0,0) loan amortization schedule principal date installment payment interest expense loan balance repayment =D4 41518 10 |=F10*6.6%/12 =F11*6.6%/12 =F12*6.6%/12 =F13*6.6%/12 =F14*6.6%/12 =F15*6.6%/12 |=F16*6.6%/12 =F17*6.6%/12 |=F18*6.6%/12 =F19*6.6%/12 =F20*6.6%/12 |=F21*6.6%/12 =F22*6.6%/12 =F23*6.6%/12 |=F24*6.6%/12 |=F25*6.6%/12 |=F26*6.6%/12 |=F27*6.6%/12 =F28*6.6%/12 =F29*6.6%/12 =F30*6.6%/12 =F31*6.6%/12 |=F32*6.6%/12 =F33*6.6%/12 |=F34*6.6%/12 =F35*6.6%/12 41548 =$D$6 41579 =$D$6 41609 =$D$6 41640 =$D$6 41671 =$D$6 =F10-E11 11 =C11-D11 |=C12-D12 =F11-E12 12 =C13-D13 13 =F12-E13 =C14-D14 =F13-E14 14 =F14-E15 =C15-D15 15 41699 =$D$6 41730 =$D$6 41760 =$D$6 41791 =$D$6 41821 =$D$6 41852 =$D$6 41883 =$D$6 41913 =$D$6 41944 =$D$6 =C16-D16 16 =F15-E16 =C17-D17 =F16-E17 17 |=C18-D18 =F17-E18 18 =F18-E19 19 =C19-D19 =C20-D20 20 =F19-E20 =F20-E21 21 =C21-D21 22 =C22-D22 =F21-E22 23 =C23-D23 =F22-E23 =C24-D24 24 =F23-E24 41974 =$D$6 42005 =$D$6 42036 =$D$6 =C25-D25 =F24-E25 25 26 =C26-D26 =F25-E26 27 =C27-D27 =F26-E27 42064 =$D$6 42095 =$D$6 42125 =$D$6 =C28-D28 28 =F27-E28 =F28-E29 29 =C29-D29 30 =C30-D30 =F29-E30 42156 =$D$6 =F30-E31 31 =C31-D31 42186 =$D$6 42217 =$D$6 42248 =$D$6 42278 =$D$6 42309 =$D$6 32 =C32-D32 =F31-E32 |=C33-D33 =F32-E33 33 =C34-D34 34 =F33-E34 35 =C35-D35 =F34-E35 36 =C36-D36 =F35-E36 37 loan balance on November 1, 2015 38 =F36 prepayment penalty @ 1% of loan balance =F38*1% 39 total amount she must pay to the bank =F38+F39 %3D 40 41 42 43 ш ...

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