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7 April, 15:37

You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 4 years (48 months), and the nominal interest rate would be 9%, with interest paid monthly. What is the monthly loan payment? Do not round intermediate calculations. Round your answer to the nearest cent

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  1. 7 April, 16:02
    0
    the monthly paiment will be: $ 248.85

    Explanation:

    Total principal paid will be : $ 10,000

    Total interest paid: $ 1,944.82

    Month 1:

    Payment; 248.85 Principal: 173.85 Interest: 75.00 Balance: 9,826.15

    Month 2:

    Payment:$248.85 Principal $175.15 Interest $73.70 Total interest $148.70 Balance $9,651.0

    And so on ...

    Mont 48:

    JPayment: $248.85 Principal$247.00 Interest: $1.85 Total interest:$1,944.82 Balance:$0.00
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