You have taken out a 60-month, $26,000 car loan with an APR of 4%, compounded monthly. The monthly payment on the loan is $478.83. Assume that right after you make your 50th payment, the balance of the loan is $4,701.67 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.)
You have taken out a 60-month, $26,000 car loan with an APR of 4%, compounded monthly. The monthly payment on the loan is $478.83. Assume that right after you make your 50th payment, the balance of the loan is $4,701.67 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.)
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![You have taken out a 60-month, $26,000 car loan with an APR of 4%, compounded monthly. The monthly payment on
the loan is $478.83. Assume that right after you make your 50th payment, the balance of the loan is $4,701.67 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60bc2280-ce2b-43c2-8519-3f3c8344fbbd%2F8735b3be-20bd-4269-ad90-441470357b44%2Fkuy9hxr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You have taken out a 60-month, $26,000 car loan with an APR of 4%, compounded monthly. The monthly payment on
the loan is $478.83. Assume that right after you make your 50th payment, the balance of the loan is $4,701.67 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.)
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