Create an amortization schedule for a 4 year car loan of $25,000 with a fixed ra
ID: 3148160 • Letter: C
Question
Create an amortization schedule for a 4 year car loan of $25,000 with a fixed rate of 4.8% that compounds monthly. Whats the monthly payment? How much does the customer pay over the life of the loan?
Suppose that after 6 months, the vehicle owner experiences a windfall and decides to apply $3000 towards his/her principal. Copy the finished amortization schedule from above to reflect this exptra payment towards the principal. How many full months earlier will the owner be able to pay off their loan if they continue to make the original payment each month with only the one-time extra payment towards the principal?
What if the owner pays an extra $100 each month, starting at the beginning of the loan. How many full months does the increase payment shave off the loan?
Period Payment Interest Paid Principal Paid Remaining Loan Amount 0 25,000Explanation / Answer
The mathematical formula for calculating EMIs is: EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
where P stands for the loan amount or principal = 25000
R is the interest rate per month = 4.8% = 0.4%
N is the number of monthly instalments = 4 years = 48 month
EMI = $573.47
total amount to be paid = 48 * $573.47 = $27,526.57
interest paid = $27,526.57 - $25,000 = $2,526.57
interest paid in every EMI = $2526.57/48 = $52.64
principal paid in every EMI = $573.47 - $52.64 = $520.83
find the table
additional $3000 paid
period payment interest paid principal paid remaining loan amount 0 0 0 0 0 1 ($573.47) ($52.64) ($520.83) $24,479.17 2 ($573.47) ($105.27) ($1,041.67) $23,958.33 3 ($573.47) ($157.91) ($1,562.50) $23,437.50 4 ($573.47) ($210.55) ($2,083.33) $22,916.67 5 ($573.47) ($263.18) ($2,604.17) $22,395.83 6 ($573.47) ($315.82) ($3,125.00) $21,875.00 7 ($573.47) ($368.46) ($3,645.83) $21,354.17 8 ($573.47) ($421.09) ($4,166.67) $20,833.33 9 ($573.47) ($473.73) ($4,687.50) $20,312.50 10 ($573.47) ($526.37) ($5,208.33) $19,791.67 11 ($573.47) ($579.00) ($5,729.17) $19,270.83 12 ($573.47) ($631.64) ($6,250.00) $18,750.00 13 ($573.47) ($684.28) ($6,770.83) $18,229.17 14 ($573.47) ($736.92) ($7,291.67) $17,708.33 15 ($573.47) ($789.55) ($7,812.50) $17,187.50 16 ($573.47) ($842.19) ($8,333.33) $16,666.67 17 ($573.47) ($894.83) ($8,854.17) $16,145.83 18 ($573.47) ($947.46) ($9,375.00) $15,625.00 19 ($573.47) ($1,000.10) ($9,895.83) $15,104.17 20 ($573.47) ($1,052.74) ($10,416.67) $14,583.33 21 ($573.47) ($1,105.37) ($10,937.50) $14,062.50 22 ($573.47) ($1,158.01) ($11,458.33) $13,541.67 23 ($573.47) ($1,210.65) ($11,979.17) $13,020.83 24 ($573.47) ($1,263.28) ($12,500.00) $12,500.00 25 ($573.47) ($1,315.92) ($13,020.83) $11,979.17 26 ($573.47) ($1,368.56) ($13,541.67) $11,458.33 27 ($573.47) ($1,421.19) ($14,062.50) $10,937.50 28 ($573.47) ($1,473.83) ($14,583.33) $10,416.67 29 ($573.47) ($1,526.47) ($15,104.17) $9,895.83 30 ($573.47) ($1,579.10) ($15,625.00) $9,375.00 31 ($573.47) ($1,631.74) ($16,145.83) $8,854.17 32 ($573.47) ($1,684.38) ($16,666.67) $8,333.33 33 ($573.47) ($1,737.01) ($17,187.50) $7,812.50 34 ($573.47) ($1,789.65) ($17,708.33) $7,291.67 35 ($573.47) ($1,842.29) ($18,229.17) $6,770.83 36 ($573.47) ($1,894.93) ($18,750.00) $6,250.00 37 ($573.47) ($1,947.56) ($19,270.83) $5,729.17 38 ($573.47) ($2,000.20) ($19,791.67) $5,208.33 39 ($573.47) ($2,052.84) ($20,312.50) $4,687.50 40 ($573.47) ($2,105.47) ($20,833.33) $4,166.67 41 ($573.47) ($2,158.11) ($21,354.17) $3,645.83 42 ($573.47) ($2,210.75) ($21,875.00) $3,125.00 43 ($573.47) ($2,263.38) ($22,395.83) $2,604.17 44 ($573.47) ($2,316.02) ($22,916.67) $2,083.33 45 ($573.47) ($2,368.66) ($23,437.50) $1,562.50 46 ($573.47) ($2,421.29) ($23,958.33) $1,041.67 47 ($573.47) ($2,473.93) ($24,479.17) $520.83 48 ($573.47) ($2,526.57) ($25,000.00) $0.00Related Questions
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