3.53 An automobile loan of $15,000 at a nominal rate of 9% compounded monthly for 36 months requires equal end-of-month payments of $477. Complete the fol- lowing table for the first six payments as you would expect a bank to calculate the values: End of Month (n) 1 2 3 4 5 6 Interest Payment $104.24 $101.44 Repayment of Principal $367.23 $369.99 Remaining Loan Balance $14,635.50 $12,771.58 b. Calculate the principal and interest components of the payment at month 30 C. Calculate the pay-off amount at month 20
3.53 An automobile loan of $15,000 at a nominal rate of 9% compounded monthly for 36 months requires equal end-of-month payments of $477. Complete the fol- lowing table for the first six payments as you would expect a bank to calculate the values: End of Month (n) 1 2 3 4 5 6 Interest Payment $104.24 $101.44 Repayment of Principal $367.23 $369.99 Remaining Loan Balance $14,635.50 $12,771.58 b. Calculate the principal and interest components of the payment at month 30 C. Calculate the pay-off amount at month 20
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3.53 An automobile loan of $15,000 at a nominal rate of 9% compounded monthly
for 36 months requires equal end-of-month payments of $477. Complete the fol-
lowing table for the first six payments as you would expect a bank to calculate
the values:
End of
Month (n)
1
2
3
4
5
6
Interest
PROV
Payment
$104.24
$101.44
Repayment of
Principal
$367.23
$369.99
Remaining Loan
Balance
$14,635.50
$12,771.58
b. Calculate the principal and interest components of the payment at month 30
C. Calculate the pay-off amount at month 20
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