Question

De Assignment Gomm e Can PU Page Layout Formulas -Am LL A- Review View Wapat 3 Merge Share 247 04 Sorta da - 5 - For Sales X -19'013/12 LMN00R GP You have decided to purchase a new car. You plan to take out a loan to pay for the car. The loan amount is $1,500. You will pay 6.5 interest and will pay off the car in months. You are interested in calculating the total amount of money and the total amount of interest you will pay over the course of the loan to help you with these calculations, you decide to construct an amortiration table. An amortisation table provides details about the payment interest amount, principle amount, and loan balance for every month of the loan. Complete the amortization table and the summary Amort Calculate the interest amount for period 1 in cell 020 by l ying balance in period fell 119) by the loan interest rate cell C13) divided by 12 to create a monthly interesate. This formula is reusable. The interest for a given period is always the monthly interest rate times the balance from the previous period. 5 points Loan Amount SI 00.00 Interest Rate 60 Total Amount Pald Tot e st Paid SUM Check Calculation Buy new in Period 167 SALI Payment interest Principle Balance S21 S102 $448.21 $0.00 54421 50.00 Address Book copied Address Book Adres do Sorted Amortizat Type here to search

Answer 1

Answer:

Loan amount L=18900

Term N=48 months

Interest rate =6.5%

Monthly interest rate r= 6.5%/12=0.54%

So Payment per month P=L*r/(1-(1+r)^-N)=18900*0.54%/(1-(1+0.54%)^-48)=$448.21

Principle for period Nth=Payment for period Nth - Interest for period Nth

Interest for period Nth = Balance for Period (N-1)th * interest rate monthly

Balance for period Nth = Balance for Period (N-1)th-Principle for period Nth

Amortization Table
Period	Payment	Interest	Principle	Balance
0	0	0	0	18900
1	448.21	102.38	345.84	18554.17
2	448.21	100.50	347.71	18206.46
3	448.21	98.62	349.59	17856.87
4	448.21	96.72	351.49	17505.38
5	448.21	94.82	353.39	17151.99
6	448.21	92.91	355.30	16796.69
7	448.21	90.98	357.23	16439.46
8	448.21	89.05	359.16	16080.30
9	448.21	87.10	361.11	15719.19
10	448.21	85.15	363.06	15356.12
11	448.21	83.18	365.03	14991.09
12	448.21	81.20	367.01	14624.08
13	448.21	79.21	369.00	14255.09
14	448.21	77.22	370.99	13884.09
15	448.21	75.21	373.00	13511.09
16	448.21	73.19	375.02	13136.06
17	448.21	71.15	377.06	12759.01
18	448.21	69.11	379.10	12379.91
19	448.21	67.06	381.15	11998.76
20	448.21	64.99	383.22	11615.54
21	448.21	62.92	385.29	11230.25
22	448.21	60.83	387.38	10842.87
23	448.21	58.73	389.48	10453.39
24	448.21	56.62	391.59	10061.80
25	448.21	54.50	393.71	9668.09
26	448.21	52.37	395.84	9272.25
27	448.21	50.22	397.99	8874.27
28	448.21	48.07	400.14	8474.13
29	448.21	45.90	402.31	8071.82
30	448.21	43.72	404.49	7667.33
31	448.21	41.53	406.68	7260.65
32	448.21	39.33	408.88	6851.77
33	448.21	37.11	411.10	6440.67
34	448.21	34.89	413.32	6027.35
35	448.21	32.65	415.56	5611.79
36	448.21	30.40	417.81	5193.98
37	448.21	28.13	420.08	4773.90
38	448.21	25.86	422.35	4351.55
39	448.21	23.57	424.64	3926.91
40	448.21	21.27	426.94	3499.97
41	448.21	18.96	429.25	3070.72
42	448.21	16.63	431.58	2639.14
43	448.21	14.30	433.91	2205.23
44	448.21	11.94	436.27	1768.96
45	448.21	9.58	438.63	1330.33
46	448.21	7.21	441.00	889.33
47	448.21	4.82	443.39	445.94
48	448.21	2.42	445.79	0.14