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.) (Round your answers to the nearest cent.) Purchase price of a used car Down payment Number of monthly payments Amount financed Total of monthly payments Total finance charge APR $4,195 $95 60 $ 4,100 $5,944.00 $1,844.00 15.5% 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.) (Round your answers to the nearest cent.) ****TABLE ATTACHED***** Monthly Payment By table: By formula:
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.) (Round your answers to the nearest cent.) Purchase price of a used car Down payment Number of monthly payments Amount financed Total of monthly payments Total finance charge APR $4,195 $95 60 $ 4,100 $5,944.00 $1,844.00 15.5% 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.) (Round your answers to the nearest cent.) ****TABLE ATTACHED***** Monthly Payment By table: By formula:
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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Question
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.) (Round your answers to the nearest cent.)
| Purchase price of a used car |
Down payment |
Number of monthly payments |
Amount financed |
Total of monthly payments |
Total finance charge |
APR |
| $4,195 | $95 | 60 | $ 4,100 | $5,944.00 | $1,844.00 | 15.5% |
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.) (Round your answers to the nearest cent.)
****TABLE ATTACHED*****
Monthly Payment
By table:
By formula:
Transcribed Image Text:**Table 14.2: Loan Amortization Table**
This table shows the monthly payment required per $1,000 of loan amount to cover both principal and interest, depending on the interest rate and loan term. The data is helpful for understanding how different interest rates and loan terms affect the monthly payment.
**Terms in Months:**
- The table is divided into two parts with interest rates ranging from 7.50% to 16.00%. Each interest rate column has a set of monthly payments based on terms ranging from 6 to 60 months.
**Interest Rates:**
1. **7.50% to 12.00%:**
- Monthly payments are listed for interest rates from 7.50% to 12.00%.
- Payments decrease as the term lengthens but increase with higher interest rates.
2. **12.50% to 16.00%:**
- This section continues from the previous with payments at higher interest rates.
- Similar to the earlier section, payments decrease over longer terms but increase with higher rates.
**Example Analysis:**
- At 6 months and a 7.50% interest rate, the monthly payment per $1,000 is $170.34, whereas, at 60 months, it’s $20.04.
- At 16.00% for the same terms, payments are $174.53 monthly for 6 months, and $24.30 for 60 months.
**Usefulness:**
This table is crucial for borrowers considering loans, as it provides a quick reference to estimate their monthly financial obligations based on the interest rate and term of the loan. It helps in comparing options to make informed decisions about borrowing.
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