You bought a car for 30,000 and put 10% of your own money down on the car which
ID: 2782263 • Letter: Y
Question
You bought a car for 30,000 and put 10% of your own money down on the car which would be 3,000. You are left to pay a loan for rest which is 27,000 and it has an annual percentage rate of 8%. You must pay back this loan in quartley payments which would be 4 times a year leaving you with 12 payments total. Adjust annual % and number of 3 years to quartley and devise a 12 payment ammorotaztion schedule. You bought a car for 30,000 and put 10% of your own money down on the car which would be 3,000. You are left to pay a loan for rest which is 27,000 and it has an annual percentage rate of 8%. You must pay back this loan in quartley payments which would be 4 times a year leaving you with 12 payments total. Adjust annual % and number of 3 years to quartley and devise a 12 payment ammorotaztion schedule.Explanation / Answer
We can use the same formula for equated quarterly payment as that of equated monthly payment.
EQI = P x r x [(1+r)n/(1+r)n – 1]
Where,
EQI = Equated Quarter Installment
P = Principal amount = $ 27,000
r = rate of interest = 8 % p.a. or 0.08/4 =0.02 quarterly
n = no. of periods = 4 x 3 = 12
EQI = $ 27,000 x 0.0052 x [(1 + 0.02)12/(1+0.02)12 -1]
= $ 27,000 x 0.02 x [(1.02)12/(1.02)12 -1]
= $ 27,000 x 0.02 x [1.268242/(1.268242 – 1)]
= $ 27,000 x 0.02 x (1.270489/(0.268242)
= $ 27,000 x 0.02 x 4.72798
= $ 2553.109 or $ 2553.11
Amortization Schedule:
NOQ
Beg. Balance(BB)
EQI
Interest I = i x BB
Principal P =EQI- I
End. Balance EB = BB-P
1
$ 27,000.00
$ 2,553.11
$ 540.00
$ 2,013.11
$ 24,986.89
2
$ 24,986.89
$ 2,553.11
$ 499.74
$ 2,053.37
$ 22,933.52
3
$ 22,933.52
$ 2,553.11
$ 458.67
$ 2,094.44
$ 20,839.08
4
$ 20,839.08
$ 2,553.11
$ 416.78
$ 2,136.33
$ 18,702.75
5
$ 18,702.75
$ 2,553.11
$ 374.05
$ 2,179.06
$ 16,523.69
6
$ 16,523.69
$ 2,553.11
$ 330.47
$ 2,222.64
$ 14,301.06
7
$ 14,301.06
$ 2,553.11
$ 286.02
$ 2,267.09
$ 12,033.97
8
$ 12,033.97
$ 2,553.11
$ 240.68
$ 2,312.43
$ 9,721.54
9
$ 9,721.54
$ 2,553.11
$ 194.43
$ 2,358.68
$ 7,362.86
10
$ 7,362.86
$ 2,553.11
$ 147.26
$ 2,405.85
$ 4,957.01
11
$ 4,957.01
$ 2,553.11
$ 99.14
$ 2,453.97
$ 2,503.04
12
$ 2,503.04
$ 2,553.11
$ 50.06
$ 2,503.05
$ -
NOQ
Beg. Balance(BB)
EQI
Interest I = i x BB
Principal P =EQI- I
End. Balance EB = BB-P
1
$ 27,000.00
$ 2,553.11
$ 540.00
$ 2,013.11
$ 24,986.89
2
$ 24,986.89
$ 2,553.11
$ 499.74
$ 2,053.37
$ 22,933.52
3
$ 22,933.52
$ 2,553.11
$ 458.67
$ 2,094.44
$ 20,839.08
4
$ 20,839.08
$ 2,553.11
$ 416.78
$ 2,136.33
$ 18,702.75
5
$ 18,702.75
$ 2,553.11
$ 374.05
$ 2,179.06
$ 16,523.69
6
$ 16,523.69
$ 2,553.11
$ 330.47
$ 2,222.64
$ 14,301.06
7
$ 14,301.06
$ 2,553.11
$ 286.02
$ 2,267.09
$ 12,033.97
8
$ 12,033.97
$ 2,553.11
$ 240.68
$ 2,312.43
$ 9,721.54
9
$ 9,721.54
$ 2,553.11
$ 194.43
$ 2,358.68
$ 7,362.86
10
$ 7,362.86
$ 2,553.11
$ 147.26
$ 2,405.85
$ 4,957.01
11
$ 4,957.01
$ 2,553.11
$ 99.14
$ 2,453.97
$ 2,503.04
12
$ 2,503.04
$ 2,553.11
$ 50.06
$ 2,503.05
$ -
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.