Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening? The amount that goes toward interest is S (Round to the nearest cent.)
Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening? The amount that goes toward interest is S (Round to the nearest cent.)
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how
much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening?
The amount that goes toward interest is $
(Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa34e851f-4612-4e29-acb1-b1c1a5e68e4c%2F4e67c000-5f62-426c-b282-b269c36b6132%2F0090oas_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how
much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening?
The amount that goes toward interest is $
(Round to the nearest cent.)
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