Questions: To help purchase his new minivan, Hong is taking out a 17,000 amortized loan for 6 years at 5.9% annual interest. His monthly payment for this loan is 28094. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is 1/12 of a year. Round your answers to the nearest cent. Payment number Interest payment Principal payment New loan balance ------------ 1 2 16,604.31 40 41.98 238.96 299.52 41

To help purchase his new minivan, Hong is taking out a 17,000 amortized loan for 6 years at 5.9% annual interest. His monthly payment for this loan is 28094. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is 1/12 of a year. Round your answers to the nearest cent. Payment number Interest payment Principal payment New loan balance ------------ 1 2 16,604.31 40 41.98 238.96 299.52 41
Transcript text: To help purchase his new minivan, Hong is taking out a $\$ 17,000$ amortized loan for 6 years at $5.9 \%$ annual interest. His monthly payment for this loan is $\$ 28094$. Fill in all the blanks in the amortization schedule for the loan. Assume that each month is $\frac{1}{12}$ of a year. Round your answers to the nearest cent. \begin{tabular}{|c|c|c|c|} \hline \begin{tabular}{c} Payment \\ number \end{tabular} & \begin{tabular}{c} Interest \\ payment \end{tabular} & \begin{tabular}{c} Principal \\ payment \end{tabular} & \begin{tabular}{c} New loan \\ balance \end{tabular} \\ \hline 1 & $\$ \square$ & $\$ \square$ & $\$ \square$ \\ \hline 2 & $\$ \square$ & $\$ \square$ & $\$ 16,604.31$ \\ \hline & & & \\ \hline 40 & $\$ 41.98$ & $\$ 238.96$ & $\$ \$ 299.52$ \\ \hline 41 & $\$ \square$ & $\$ \square$ & $\$ \square$ \\ \hline \end{tabular}
failed

Solution

failed
failed

Solution Steps

To fill in the blanks in the amortization schedule, we need to calculate the interest payment, principal payment, and new loan balance for each payment. The interest payment for each month is calculated as the previous month's balance multiplied by the monthly interest rate. The principal payment is the total monthly payment minus the interest payment. The new loan balance is the previous balance minus the principal payment.

Step 1: Calculate Monthly Interest Payment

The monthly interest payment for the first month is calculated using the formula: \[ \text{Interest Payment} = \text{Previous Balance} \times \text{Monthly Interest Rate} \] For the first payment: \[ \text{Interest Payment} = 17000 \times 0.00491667 \approx 83.58 \]

Step 2: Calculate Principal Payment

The principal payment is the total monthly payment minus the interest payment: \[ \text{Principal Payment} = \text{Monthly Payment} - \text{Interest Payment} \] For the first payment: \[ \text{Principal Payment} = 280.94 - 83.58 \approx 197.36 \]

Step 3: Calculate New Loan Balance

The new loan balance is the previous balance minus the principal payment: \[ \text{New Balance} = \text{Previous Balance} - \text{Principal Payment} \] For the first payment: \[ \text{New Balance} = 17000 - 197.36 \approx 16802.64 \]

Step 4: Repeat for Subsequent Payments

Repeat the above steps for the second payment:

  • Interest Payment: \[ 16802.64 \times 0.00491667 \approx 82.61 \]
  • Principal Payment: \[ 280.94 - 82.61 \approx 198.33 \]
  • New Balance: \[ 16802.64 - 198.33 \approx 16604.31 \]

And for the third payment:

  • Interest Payment: \[ 16604.31 \times 0.00491667 \approx 81.64 \]
  • Principal Payment: \[ 280.94 - 81.64 \approx 199.30 \]
  • New Balance: \[ 16604.31 - 199.30 \approx 16405.01 \]

Final Answer

The first three rows of the amortization schedule are:

  1. Interest Payment: \(\boxed{83.58}\), Principal Payment: \(\boxed{197.36}\), New Balance: \(\boxed{16802.64}\)
  2. Interest Payment: \(\boxed{82.61}\), Principal Payment: \(\boxed{198.33}\), New Balance: \(\boxed{16604.31}\)
  3. Interest Payment: \(\boxed{81.64}\), Principal Payment: \(\boxed{199.30}\), New Balance: \(\boxed{16405.01}\)
Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
Par value is the initial value of the bond, commonly know as the value.
failedAnswered
The Range (Statistics). No of goals Tally Frequency 0 11 2 1 111 3 2 111 3 3 +11+1 6 4 111 3 5 1 1 6 1 1 7 1 1 The frequency table shows the numbers of goals the Lakers scored in their last twenty matches. What was the range? A. 4 B 5 C 6 D 7
failedAnswered
single layer of cells that forms the peritoneum medical measurements used to ascertain how the body is functioning
failedAnswered
The cost C, in millions of dollars, of producing q items is given by C=4.1+0.002 q. Interpret the 4.1 and the 0.002 in terms of production. Interpretation of 4.1: NOTE: Check all the correct interpretations. The 4.1 represents the fixed cost of 4.1 million. The 4.1 represents the fixed cost of 4.1. The 4.1 is the cost of producing zero units. The 4.1 is the cost in million of producing zero units.
failedAnswered
The graph below represents the function f(x). Evaluate f(4)