Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right afteryou 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 ($551.00toward principal and $450.00 toward interest in the first month). What is happening?The amount that goes toward interest is $ 94.81.(Round to the nearest cent.)The amount that goes toward the principal is S(Round to the nearest cent.)

Given information : Loan amount $45,000 Interest rate 12% Time period (Months) 60 Balance…

Answered: make your 50th payment, the balance on…

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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make your 50th payment, the balance on the loan is $ how much goes toward interest? Compare this with th ard principal and $450.00 toward interest in the first mo amount that goes toward interest is $ 94.81 und to the nearest cent.)