Principal Balance 2011 $1,678.46 $5,941.08 $34,058.92 2012 $1,405.53 $6,214.01 $27,844.92 2013 $1,120.06 $6,499.48 $21,345.44 2014 $821.47 $6,798.06 $14,547.38 2015 $509.17 $7,110.36 $7,437.01 2016 $182.52 $7,437.01 $0.0
Principal Balance 2011 $1,678.46 $5,941.08 $34,058.92 2012 $1,405.53 $6,214.01 $27,844.92 2013 $1,120.06 $6,499.48 $21,345.44 2014 $821.47 $6,798.06 $14,547.38 2015 $509.17 $7,110.36 $7,437.01 2016 $182.52 $7,437.01 $0.0
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
Use the amortization table below to answer the following questions. The loan is for 6 years at 4.5% interest on a $40,000 car.
| Year | Interest | Principal | Balance |
| 2011 | $1,678.46 | $5,941.08 | $34,058.92 |
| 2012 | $1,405.53 | $6,214.01 | $27,844.92 |
| 2013 | $1,120.06 | $6,499.48 | $21,345.44 |
| 2014 | $821.47 | $6,798.06 | $14,547.38 |
| 2015 | $509.17 | $7,110.36 | $7,437.01 |
| 2016 | $182.52 | $7,437.01 | $0.00 |
How much are the yearly payments?
b. If you traded your car in at the end of the 4 th year (2014) and it was worth $16,500, how much would you get to put towards the new car that you are buying after paying back the bank?
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