A $60,000 loan with an annual interest rate of 10% is scheduled to be paid over three years (36 months). 

A=P r(1+r)ⁿ

(1+r)ⁿ-1

A= Payment per period

P= initial principal (loan amount)

r= interest rate per period

n= total number of payments or periods

What is the monthly interest rate (in percent up to 4 decimal places, a.k.a. the ten-thousandths place, and do not round up)

How much interest expense (report to the nearest full dollar in dollars AND cents) will incur in the first month with the loan balance at $60,000?

Use the formula above to determine the monthly payment (in dollars and cents). Remember that to use a % in a calculation you need to move the decimal sign left two places. 

How much (in dollars and cents) of this first monthly payment went to principal?

What is the remaining loan balance (in dollars and cents) after the first payment?

How much (in dollars and cents) was paid out total (principal and interest) over the entire loan?

Answer rating: 100% (QA)

To find the monthly interest rate we need to convert the annual interest rate to a monthly rate We c... View the full answer