You have taken out a 60-month, $23,000 car loan with an APR of 4%, compounded monthly. The monthly payment on the loan is $423.58. Assume that right after you make your 50th payment, thebalance of the loan is $4,159.17. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month'spayment. (Note: Be careful not to round any intermediate steps less than six decimal places.)The amount that goes towards interest is $(Round to the nearest cent.)

The loan Amortization Schedule gives the information about your loan and how you'll repay it. The…

Answered: You have taken out a 60-month, $23,000…

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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You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly payment on the loan is $527.19. Assume that right after you make your 50th payment, the balance of the loan is $5,083.64. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount that goes towards interest is $. (Round to the nearest cent.) C
Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 7.9%. The annual property tax bill is $967 and the annual fire insurance premium is $498. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)
you have just borrowed $51,107 at an annual interest of 7.6% and must repay the loan in equal installments at the end of each of the next 7 years. By how much would you reduce the amount you owe (that is, principal) at the end of the first year? (Hint: Compute annual loan payment first and then the loan amortization schedule for the first year.) Group of answer choices $5,798.23 $5,790.23 $5,792.23 $5,796.23 $5,794.23
Suppose that you borrow $125,000 using a 15-year loan with an annual interest rate of 4% with monthly payments and monthly compounding. What will the balance be for this loan at the end of the 6th year? $75,000 $83,744 $58,428 $83,593
You have taken out a 60-month, $26,000 car loan with an APR of 6%, compounded monthly. The monthly payment on the loan is $502.65. Assume that right after you make your 50th payment, the balance of the loan is $4,890.99. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. The amount that goes towards interest is $ . (Round to the nearest cent.) The amount that goes towards the principal is $. (Round to the nearest cent.) Compare this with the prinicipal and interest paid in the first month's payment. (Select the best choice below.) O A. In the first month, the amount that goes towards principal is $372.65 and toward interest is $130.00. Therefore, you can see that over time, as you pay down the principal of the loan, less of your payment has to go to cover interest and more of your payment can go towards reducing the principal. O B. In the first month, the amount that…
You have applied for a loan at 3.5% annual interest rate with monthly payments for 15 year fully amortized term. The loan amount is $145, 000. What is your monthly loan payment?
Suppose you obtain a 20-year mortgage loan of $196,000 at an annual interest rate of 7.9%. The annual property tax bill is $966 and the annual fire insurance premium is $488. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)
Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12% converted monthly. 1. How much is the outstanding balance after the 36th payment? 2. How much of the 37th payment goes to pay the interest the principal?
Find the monthly payment and estimate the remaining balance (to the nearest dollar). Assume interest is on the unpaid balance. 10) 30-year car loan for $235,000 at 3.21%; remaining balance after 20 years.
Suppose you obtain a 30 year mortgage loan of 197,000$ at an annual interest rate of 8.1%. The annual property tax bill is $967 and the annual fire insurance premium is 495$. Find the total monthly payment for the mortgage, property tax, and fire insurance.
Mr. Bean wants to borrow $9,100 for three years. The interest rate is 7.1% compounded monthly. a. What quarterly payments are required on the loan? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PMT = 24 b. What will be the balance owed on the loan at the start of the third year? Balance owed=
You have just taken out a $23,000 car loan with a 7% 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?

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