You have just taken out a $20,000 with a 6% APR, car loan 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?
You have just taken out a $20,000 with a 6% APR, car loan 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?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Transcribed Image Text:You have just taken out a $20,000
with a 6% APR,
car loan
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?
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