Explanation Given info: P = $ 12 , 000 A P R = 7 % l o a n term (y) = 10 years n=12 Concept used: (a) P M T = P × A P R n 1 − ( 1 + A P R n ) ( − n Y ) Where, PMT=Regular payment amount APR=Annual percentage rate(as a decimal) n=number of payment periods per year y=number of years P M T = $ 12 , 000 × ( 0.07 12 ) [ 1 − ( 1 + 0.07 12 ) ( − 12 × 10 ) ] = $ 139.33 (b) Total amount paid over the term of the loan = $139 .33 1month × 12month 1year ×10 year = $ 16 , 719...

6th Edition

ISBN: 8220100802713

Author: Briggs

Publisher: PEARSON

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Chapter 4.D, Problem 16E

To determine

(a) monthly payment

(b) Total amount paid

(c) (i) Percentage towards the principal

(ii) Percentage towards interest

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Chapter 4.D, Problem 15E

Chapter 4.D, Problem 17E

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(a) monthly payment (b) Total amount paid (c) (i) Percentage towards the principal (ii) Percentage towards interest