4 Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table;) Note: Round your answers to the nearest cent. Purchase price of a used car $4,295 By table By formula Down payment $85 Monthly Payment Number of monthly payments 60 Amount financed $4,210 Total of monthly payments $6,044.00 Total finance. charge $1,834.00 APR 15.5%
4 Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.) (Use 15.5% for table lookup.) (Use the loan amortization table;) Note: Round your answers to the nearest cent. Purchase price of a used car $4,295 By table By formula Down payment $85 Monthly Payment Number of monthly payments 60 Amount financed $4,210 Total of monthly payments $6,044.00 Total finance. charge $1,834.00 APR 15.5%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:**TABLE 14.2**
**Loan Amortization Table (Monthly Payment per $1,000 to Pay Principal and Interest on Installment Loan)**
| Terms in Months | 7.50% | 8.00% | 8.50% | 9.00% | 10.00% | 10.50% | 11.00% | 11.50% | 12.00% | 12.50% | 13.00% | 13.50% | 14.00% | 14.50% | 15.00% | 15.50% | 16.00% |
|-----------------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|---------|
| 6 | $170.34 | $170.58 | $170.83 | $171.20 | $171.56 | $171.81 | $172.05 | $172.30 | $172.55 | $172.80 | $173.04 | $173.29 | $173.54 | $173.79 | $174.03 | $174.28 | $174.53 |
| 12 | $86.76 | $86.99 | $87.22 | $87.46 | $87.92 | $88.15 | $88.38 | $88.62 | $88.85 | $89.10 | $89.32 | $89.57 | $89.79 | $90.02 | $90.26 | $90.49 | $90.73 |
| 18 | $58.92 | $59.15 | $59.37 | $59.60 | $60.06 | $60.29 | $60.52 | $60.75 | $60.98 | $61.21 | $61.45 | $61.68 | $61.91 | $62.15 | $62.38 | $62.62 | $62.86 |
| 24
Transcribed Image Text:### Problem 4: Monthly Payment Calculation
Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding of percents in table lookup.)
**Instructions:**
- Use a 15.5% rate for table lookup.
- Utilize the loan amortization table.
- Note: Round your answers to the nearest cent.
#### Given Information:
- **Purchase price of a used car**: $4,295
- **Down payment**: $85
- **Number of monthly payments**: 60
- **Amount financed**: $4,210
- **Total of monthly payments**: $6,044.00
- **Total finance charge**: $1,834.00
- **APR**: 15.5%
#### Monthly Payment Calculation:
| Method | Monthly Payment |
|-----------|-----------------|
| By table | |
| By formula| |
#### Diagram Explanation:
The table demonstrates how to determine the monthly payment using two methods:
1. **By Table**: Using the amortization table at a 15.5% rate.
2. **By Formula**: Using the standard loan payment calculation formula.
Ensure to fill in the empty fields with the correct monthly payment values from your calculations.
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