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You just received a car loan for $20,000. The terms of the loan are for 5 years at 6% annual interest, compounded monthly.

a) what is your monthly payment?

b) for the first month, how much of this payment goes to principal?

c) For the first month, how much of this payment goes to interest?

d) How much interest is paid in the second month?

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Anne Gillian Duero
Anne Gillian DueroLv10
28 Sep 2019

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Upon graduation, Jeffrey Feldhusen borrows $16,800 to finance a late-model used car. The loan is made by a family member who wishes to have equal annual payments at 10% over 4 years.

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c) How much of the second payment goes to pay interest?

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You borrow 15,000 at 5% per year compounded monthly. The term of the loan is 6 years?

1- What are your monthly payments?

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a. What will be the monthly payment on a 30-year, $250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan?

b. What will be the monthly payment on a 30-year, $250,000 mortgage loan, where the interest rate is 6% per year, compounded continuously? How much interest is paid over the life of the loan?

c. What will be the monthly payment on a 15-year, $250,000 mortgage loan, where the interest rate is 6% per year, compounded monthly? How much interest is paid over the life of the loan?

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