Suppose you purchase a car for $25,000 with a 48 month loan from your credit union...

 

    

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Suppose you purchase a car for $25,000 with a 48 month loan from your credit union at 8% APR compounded monthly. a. Calculate your monthly payment. (worth 5 points) b. Create an amortization table. Your table should have the following column headings: MONTH, PAYMENT SIZE, INTEREST, PAYMENT TO PRINCIPAL and OUTSTANDING PRINCIPAL. (worth 30 points) c. Calculate the total finance charge for the purchase of your car. (worth 7.5 points) d. Calculate the grand total for the purchase of your car. (worth 7.5 points) EXTRA CREDIT e. Describe the graph of interest versus months. (worth 2 points) f. Describe the graph of payment applied to principal versus months. (worth 2 points) Suppose you purchase a car for $25,000 with a 48 month loan from your credit union at 8% APR compounded monthly. a. Calculate your monthly payment. (worth 5 points) b. Create an amortization table. Your table should have the following column headings: MONTH, PAYMENT SIZE, INTEREST, PAYMENT TO PRINCIPAL and OUTSTANDING PRINCIPAL. (worth 30 points) c. Calculate the total finance charge for the purchase of your car. (worth 7.5 points) d. Calculate the grand total for the purchase of your car. (worth 7.5 points) EXTRA CREDIT e. Describe the graph of interest versus months. (worth 2 points) f. Describe the graph of payment applied to principal versus months. (worth 2 points)

Answer rating: 100% (QA)

a To calculate the monthly payment we can use the formula for the monthly payment amount on a loan M... View the full answer