Question

Ho by yeaurs to buy Acommercial bank will loan you $17500 tor two a car. The loan nust be repaid 24 equal monthly payments. The annual interest rat on the loau is 6 of tha unpaid balance whatis the amount of hs monthpaymets? what is the loan balanCa after 18 mouths?

Answer 1

Loan amount (PV) = $ 17,500

Rate = 6% pa = 6%/12 per month

Number of months, nper = 24

Amount of monthly payments(PMT) = = $ 775.61

=pmt(6%/12,24,17500 PMT(rate, nper, pv, [fv], [type])

Beginning Monthly Month Balance Monthly payme interest rate 1 17500 $ 775.61 0.50% 2 $ 16,811.89 $ 775.61 0.50% 3 $ 16,120.34 $ 775.61 0.50% 4 $ 15,425.33 $ 775.61 0.50% 5 $ 14,726.85 $ 775.61 0.50% 6 $ 14,024.87 $ 775.61 0.50% 7 $ 13,319.38 $ 775.61 0.50% 8 $ 12,610.37 $ 775.61 0.50% 9 $ 11,897.81 $ 775.61 0.50% 10 $ 11,181.69 $ 775.61 0.50% 11 $ 10,461.99 $ 775.61 0.50% 12 $ 9,738.69 $ 775.61 0.50% 13 $ 9,011.77 $ 775.61 0.50% 14 $ 8,281.22 $ 775.61 0.50% 15 $ 7,547.01 $ 775.61 0.50% 16 $ 6,809.14 $ 775.61 0.50% 17 $ 6,067.57 $ 775.61 0.50% 18 $ 5,322.30 $ 775.61 0.50% 19 $ 4,573.30 $ 775.61 0.50% 201 $ 3.820.55 $ 775.61 0.50% Interest Principal Ending Balance 87.5 $ 688.11 $ 16,811.89 84.0594466 $ 691.55 $ 16,120.34 80.60169044 $ 695.01 $ 15,425.33 77.12664549 $ 698.48 $ 14,726.85 73.63422532 $ 701.98 $ 14,024.87 70.12434305 $ 705.49 $ 13,319.38 66.59691137 $ 709.01 $ 12,610.37 63.05184253 $ 712.56 $ 11,897.81 59.48904835 $ 716.12$ 11,181.69 55.90844019 $ 719.70 $ 10,461.99 52.309929 $ 723.30 $ 9,738.69 48.69342524 $ 726.92 $ 9,011.77 45.05883897 $ 730.55 $ 8,281.22 41.40607977 $ 734.20 $ 7,547.01 37.73505677 $ 737.88 $ 6,809.14 34.04567866 $ 741.57 $ 6,067.57 30.33785365 $ 745.27 $ 5,322.30 26.61148953 $ 749.00 $ 4,573.30 22.86649358 $ 752.74$ 3,820.55 19.102772651 $ 756.51 $ 3.064.051

Loan Balance after 18th month = $ 4573.30

Formulae

=PMT(6%/12,24,17500) Month 1414 1415 1416 1417 1418 1419 1420 1421 1422 1423 1424 1425 1426 1427 1428 1429 1430 1431 1432 =D1415+1 =D1416+1 =D1417+1 =D1418+1 =D1419+1 =D1420+1 =D1421+1 =D1422+1 =D1423+1 =D1424+1 =D1425+1 =D1426+1 =D1427+1 =D1428+1 =D1429+1 =D1430+1 =D1431+1 Beginning Balance 17500 =J1415 =)1416 =J1417 =J1418 =J1419 =J1420 =J1421 =J1422 =J1423 =J1424 =J1425 =J1426 =J1427 =J1428 =J1429 =J1430 =J1431 Monthly Monthly payme interest rate --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 =-$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 =-$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 --$B$1414 =6%/12 =-$B$1414 =6%/12 Interest Principal Ending Balance =G1415*E1415 |=F1415-H1415 =E1415-11415 =G1416*E1416 =F1416-H1416 1=E1416-11416 =G1417*E1417 =F1417-H1417 1=E1417-11417 =G1418*E1418 |=F1418-H1418 =E1418-11418 =G1419*E1419 =F1419-H1419 =E1419-11419 =G1420*E1420 =F1420-H1420 1=E1420-11420 =G1421*E1421 =F1421-H14211=E1421-11421 =G1422*E1422 |=F1422-H1422 1=E1422-11422 =G1423*E1423 |=F1423-H1423 =E1423-11423 =G1424*E1424 =F1424-H1424 =E1424-11424 =G1425*E1425 =F1425-H1425 =E1425-11425 =G1426*E1426 |=F1426-H1426 =E1426-11426 =G1427*E1427 =F1427-H1427 =E1427-11427 =G1428*E1428 =F1428-H1428 =E1428-11428 =G1429*E1429 =F1429-H1429 =E1429-11429 =G1430*E1430 =F1430-H1430 =E1430-11430 =G1431*E1431 |=F1431-H1431 =E1431-11431 =G1432*E1432 =F1432-H1432 =E1432-11432