You have just taken out a $17,000 car loan with a 8% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? When you make your first payment, $ will go toward the principal of the loan and $ will go toward the interest.
You have just taken out a $17,000 car loan with a 8% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward interest? When you make your first payment, $ will go toward the principal of the loan and $ will go toward the interest.
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Transcribed Image Text:You have just taken out a $17,000
car loan with a 8% APR, compounded
monthly. The loan is for five years.
When you make your first payment in
one month, how much of the
payment will go toward the principal
of the loan and how much will go
toward interest?
When you make your first payment,
$ will go toward the principal of
the loan and $
will go toward
the interest.
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