Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he sho
ID: 2768508 • Letter: B
Question
Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the used car he wanted to buy. Then he conducted a carfax.com search on the car he found to see if the car had ever been in an accident. The Carfax was clean so he purchased the used car for $14,400. He put $1,000 down and financed the rest with a 36-month, 8.0% loan.
What is his monthly car payment by table lookup? (Use loan amortization table) (Round your answer to the nearest cent.)
Monthly payment $ _________?
Explanation / Answer
Where
Interest paid = Beginning balance * monthly interest rate
Principal = Monthly payment – interest paid
Ending balance = beginning balance – principal paid
Beginning balance = previous year ending balance
Monthly rate(M)= Yearly rate/12= 0.67% Monthly payment= 419.9072972 Month Beginning balance (A) Ending balance Interest = M*A Principal paid Ending balance 1 13400 419.9072972 89.33333333 330.5739638 13069.42604 2 13069.42604 419.9072972 87.12950691 332.7777903 12736.64825 3 12736.64825 419.9072972 84.91098831 334.9963089 12401.65194 4 12401.65194 419.9072972 82.67767958 337.2296176 12064.42232 5 12064.42232 419.9072972 80.42948213 339.4778151 11724.9445 6 11724.9445 419.9072972 78.1662967 341.7410005 11383.2035 7 11383.2035 419.9072972 75.88802336 344.0192738 11039.18423 8 11039.18423 419.9072972 73.59456153 346.3127356 10692.87149 9 10692.87149 419.9072972 71.28580996 348.6214872 10344.25001 10 10344.25001 419.9072972 68.96166671 350.9456305 9993.304377 11 9993.304377 419.9072972 66.62202918 353.285268 9640.019109 12 9640.019109 419.9072972 64.26679406 355.6405031 9284.378606 13 9284.378606 419.9072972 61.89585737 358.0114398 8926.367166 14 8926.367166 419.9072972 59.50911444 360.3981827 8565.968983 15 8565.968983 419.9072972 57.10645989 362.8008373 8203.168146 16 8203.168146 419.9072972 54.68778764 365.2195095 7837.948636 17 7837.948636 419.9072972 52.25299091 367.6543063 7470.29433 18 7470.29433 419.9072972 49.8019622 370.105335 7100.188995 19 7100.188995 419.9072972 47.3345933 372.5727039 6727.616291 20 6727.616291 419.9072972 44.85077527 375.0565219 6352.559769 21 6352.559769 419.9072972 42.35039846 377.5568987 5975.00287 22 5975.00287 419.9072972 39.83335247 380.0739447 5594.928926 23 5594.928926 419.9072972 37.29952617 382.607771 5212.321155 24 5212.321155 419.9072972 34.7488077 385.1584895 4827.162665 25 4827.162665 419.9072972 32.18108443 387.7262127 4439.436452 26 4439.436452 419.9072972 29.59624302 390.3110542 4049.125398 27 4049.125398 419.9072972 26.99416932 392.9131279 3656.21227 28 3656.21227 419.9072972 24.37474847 395.5325487 3260.679722 29 3260.679722 419.9072972 21.73786481 398.1694324 2862.510289 30 2862.510289 419.9072972 19.08340193 400.8238953 2461.686394 31 2461.686394 419.9072972 16.41124263 403.4960546 2058.190339 32 2058.190339 419.9072972 13.72126893 406.1860283 1652.004311 33 1652.004311 419.9072972 11.01336207 408.8939351 1243.110376 34 1243.110376 419.9072972 8.287402508 411.6198947 831.4904815 35 831.4904815 419.9072972 5.543269876 414.3640273 417.1264542 36 417.1264542 419.9072972 2.780843028 417.1264542 1.47793E-12Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.