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You are to create a monthly payment schedule for a Compound Interest Car Loan us

ID: 3198054 • Letter: Y

Question

You are to create a monthly payment schedule for a Compound Interest Car Loan using the amortization formula. Again, the loan will be for $5,200 at 4% interest for 60 months. The difference here is that since the loan is being amortized, you should see the effect of interest being charged on only the principal remaining.

Compound Interest Car Loan Amortization Formula

Please insert the correct information in the table based on the assignment directions.

Payment Number

Payment Amount

Interest

Principal

Balance

Payment Number

Payment Amount

Interest

Principal

Balance

Explanation / Answer

Payment Number

Payment amount

Interest

Principle

Balance

1

95.77

17.33

78.44

5,121.57

2

95.7795.77

17.07

78.70

5,042.87

3

95.7795.77

16.81

78.96

4,963.92

4

95.7795.77

16.55

79.22

4,884.70

5

95.7795.77

16.28

79.49

4,805.21

6

95.7795.77

16.02

79.75

4,725.47

7

95.7795.77

15.75

80.02

4,645.45

Payment Number

Payment amount

Interest

Principle

Balance

1

95.77

17.33

78.44

5,121.57

2

95.7795.77

17.07

78.70

5,042.87

3

95.7795.77

16.81

78.96

4,963.92

4

95.7795.77

16.55

79.22

4,884.70

5

95.7795.77

16.28

79.49

4,805.21

6

95.7795.77

16.02

79.75

4,725.47

7

95.7795.77

15.75

80.02

4,645.45

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