(2 points) Brandon and Kayla have decided to borrow $17,100 to buy a new Honda Fit....

Monthly payments of Car Loan= $318.80 as follows:

Monthly payments of Student Loan= $279.11 as follows:

Amortization schedule of the student loan for the first year (12 months) is as follows:

How much of their first payment goes toward interest? Answer: $210
How much of their first payment goes toward principal? Answer: $69.11

After making their first payment, what is the remaining balance? Answer: $35,930.89

How much of their second payment goes toward interest? Answer: $209.60
How much of their second payment goes toward principal? Answer: $69.51
After making their second payment, what is the remaining balance?:Answer: $35,861.38

Total amount of interest to be paid on Student loan in the first year= $2,492.87

Method of constructing amortization schedule:

1. Loan amount is the beginning balance of the entire term as well as the first payment period (month)

2. Monthly interest rate is calculated by dividing the yearly interest rate by 12. In the given case, monthly interest rate= 7%/12= 0.00583333

3. Interest for each month is calculated by multiplying the beginning balance by monthly interest rate. In the given case, interest for first month= $36,000*0.00583333= $210

4. Principal component of each monthly payment is calculated by deducting the interest for that month from the monthly payment. In the given case, principal component of first month payment= $279.11- $210 = $69.11

5. End balance of each month = Beginning balance minus principal repaid during that month. The end balance of each month will be the beginning balance of the succeeding month.

In the given case, end balance of the first month= $36,000 - $69.11 = $35,930.89

в со 1 Monthly payments of fixed rate loan. 2 Payments at the end of each month 3 Monthly payments (PMT) is calculated using the formula EMI=[P*r*(1+r)^n]/[(1+r)^n)-1 4 Where P= Principal (loan amount), 5 n= Number of installments. ie if N= number of years, n=N*12 6 r= Rate of interest per month in decimals ie. If R= Yearly rate, r=R/(100*12) All amounts in $ 8 Given that 9 Principal (loan amount) (P)= 100 No. of years (N)= 10 Rate of interest (% p.a)=R= 4.5 No. of months (n)= 60 11 12 Calculations: 13 14 Interest rate per month in decimals (r )= 15 No. of months (n)= 16 60 Formula Cell reference Value R/(100*12) D10/(100*12) 0.00375 N*12 G9*12 (1+r)= 1+G14 1.00375 (1+r)^n= G16^G10 1.25179582 [(1+r)^n]-1= G17-1 0.25179582 P*r*(1+r)^n= D9*G14*G17 80.271407 [P*r*(1+r)^n]/[(1+r)^n)-1 G19/618 318.795629 Rounded to $ 318.80 18 19 20 Monthly payments (PMT)= 21 22

A B C D E F 1 Monthly payments of fixed rate loan. Payments at the end of each month 3 Monthly payments (PMT) is calculated using the formula EMI=[P*r*(1+r)^n]/[(1+r)^n]-1 4 Where P= Principal (loan amount), 5 n= Number of installments. ie if N= number of years, n=N*12 6 r= Rate of interest per month in decimals ie. If R= Yearly rate, r=R/(100*12) All amounts in $ Given that 9 Principal (loan amount) (P)= 36,000 No. of years (N)= 10 Rate of interest (% p.a)=R= 7 No. of months (n)= 20 240 11 12 Calculations: 13 14 Interest rate per month in decimals (r = 15 No. of months (n)= 16 11 Formula Cell reference Value R/(100*12) D10/(100*12) 0.00583333 N*12 G9*12 240 (1+r)= 1+G14 1.00583333 (1+r)^n= G164G10 4.03873885 [(1+r)^n)-1= G17-1 3.03873885 P*r*(1+r)^n= D9*G14*617 848.135158 [P*r*(1+r)^n]/[(1+r)^n]-1 G19/618 279.107617 Rounded to $ 279.11 18 19 20 Monthly payments (PMT)= 22