Car Loan Amortization

Complete the loan amortization schedule for a car loan that will be repaid over 60 months and answer the following
1. What is your monthly payment?
2. What is the total $ amount of payments made over the life of the loan?
payment no beginning bal
Loan Input Data Amount 1
Principal Amount 49000 2
Annual Interest Rate 5.90% 3
Periods per year 12 4
Total number of payments 60 5
% rate per period 6
7
8
9
10
11
Fill in numbers until 60
58
59
60
months and answer the following questions (The details about the loan are shown below):

payment amointerest paid principle paidending balance

Please explain in details how this assignment was completed, thank you
Mortgage Amortization
Complete the loan amortization schedule for a Mortgage that will be repaid over 360 months and answer the follow

1. What is your monthly payment?

2. What is the total $ amount of payments made over the life of the loan
3. How many months will it take to pay off the loan if you pay an extra $393.53 per month?
Note: Enter the month when the whole principal is paid off. Also, remember to show the amortization table for th

Loan Input Data Amount Payment No Beginning Ba Payment Amo

Annual Interest Rate 5.20% 1
Periods per year 20 2
Total Number of Payments 360 3
Percentage rate per period 393.53 fil in numbers until 360
60 months and answer the following questions (The details about the loan are shown below):

how the amortization table for the original payment before you submit.

Interest Paid Principle PaidEnding Balance

You invest $2485 at the beginning of every year and your friend invests 2485 at the end of every year. If you both ea

How much will your friend have in his accounts?

You currently have $2,511 in a retirement savings account that earns an annual return of 9.00%. You want to retire

You currently owe $3,391 to your credit card that charges an annual interest rate of 18,00%. You make %139 of new

You would like to retire in 35 years. The expected rate of inflation is 2% per year. You currently have a standard of li

You purchase a house for $391,641. You made a down payment of $20,000 and the remainder of the purchase price
e end of every year. If you both earn an annual rate of return of 9.00% a) How much will you have in your account after 18 year

turn of 9.00%. You want to retire in 48 years with $1,000,000. How much more do you need to save at the end of every year to

of 18,00%. You make %139 of new charges everuy month and make a payment of $241 every month. What will your credit card

ou currently have a standard of living that requires $9,254 of monthly expenses. Assuming you want to maintain the same stan

e remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30 year mortgage with an annual
have in your account after 18 years?

o save at the end of every year to reach your retirement goal?

month. What will your credit card balance be in 3 months?

ou want to maintain the same standard of living in retirement, what are your monthly expenses expected to be in the first year

30 year mortgage with an annual interest rate of 6%. Mortagge payments are made monthly. What is your monthly amount of
 If you want to use formulas, list

Remembering that an annuity is a series of ca

disbursements beginning either immediately

1) PV of ordinary annuity (assumptions: 1) The p

es expected to be in the first year of retirement?

. What is your monthly amount of your mortgage payment?

Where: P = periodic payment, r = periodic rat

2) PV of annuity due (assumptions: 1) The perio

3) FV of ordinary annuity (assumptions: 1) The p

4) FV of annuity due (assumptions: 1) The perio

5) Note that if in addition to annuity like cash flow

then we need to adjust the PV calculations ac
the PV of an ordinary annuity is adjusted by t

1) For problems with NO periodic payments,

2) To solve for periodic payment, simply reve
3) To solve for the rate, simply reverse the ap
 t to use formulas, listed below are some formulas commonly used in TVM Calcula

that an annuity is a series of cash flows in which you make a lump sum payment or series of payments and in return
s beginning either immediately (annuity due) or at some point in the future.

annuity (assumptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment

1  (1  r )  n 
PV Annuity  P 
 r 
riodic payment, r = periodic rate, and n = no of periods.

due (assumptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment is TO

1  (1  r )  ( n1) 
PV AnnuityDue  PVAnnuity (1  r )  P  P  
 r 

annuity (assumptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment

 (1  r ) n  1
FVAnnuity  P 
 r 
due (assumptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment is TO

 (1  r ) n  1 
FV AnnuityDue  FV Annuity (1  r )  (1  r ) P  
 r 

addition to annuity like cash flows, if there is a payment at the end of the period in addition to the annuity (periodic) pa
to adjust the PV calculations accordingly. So for example, if there is a payment FV occurring at the end of the n perio
rdinary annuity is adjusted by the PV of the final lump sum payment.

1  (1  r )  n  FV
PV Annuity  FVatEnd  P  
 (1  r )
n
 r

ms with NO periodic payments, simply put the Periodic Payment = 0

periodic payment, simply reverse the appropriate formula (depending on if the problem involves PV or FV)
the rate, simply reverse the appropriate formula (depending on if the problem involves PV or FV).
y used in TVM Calculations:

eries of payments and in return obtain regular

ot change, 3) The first payment is one period away):

ange, 3) The first payment is TODAY)::

)  ( n 1) 



ot change, 3) The first payment is one period away):

ange, 3) The first payment is TODAY)::

) n  1



ition to the annuity (periodic) payment,

curring at the end of the n periods,
 m involves PV or FV)
es PV or FV).
Prepare the first row of a loan amortization schedule based on the following information. The loan amount is $15,85
a) What is the Loan Payment?
b) What portion of this pyament is Interest?
c) What is the Loadn Balance after the first monthly payment?
d) What is the most you would be willing to pay for an investment that will pay you $834 in 1 year, $714 in two year
mation. The loan amount is $15,857 with an annual interest rate of 13.00%. The loan will be repaid over 10 years with monthly

u $834 in 1 year, $714 in two years, and $955 in three years, if your required rate of return for this type of investment is 24%?
epaid over 10 years with monthly payments.
If you want to use formulas, listed below

Remembering that an annuity is a series of cash flows in

r this type of investment is 24%? disbursements beginning either immediately (annuity due

1) PV of ordinary annuity (assumptions: 1) The periodic paym

Where: P = periodic payment, r = periodic rate, and n = n

2) PV of annuity due (assumptions: 1) The periodic payment

PV AnnuityDue  PV Ann

3) FV of ordinary annuity (assumptions: 1) The periodic paym

4) FV of annuity due (assumptions: 1) The periodic payment

FV AnnuityDue  FV A

5) Note that if in addition to annuity like cash flows, if there is

then we need to adjust the PV calculations accordingly. S
the PV of an ordinary annuity is adjusted by the PV of the

1) For problems with NO periodic payments, simply put th

2) To solve for periodic payment, simply reverse the appr
3) To solve for the rate, simply reverse the appropriate for
formulas, listed below are some formulas commonly used in TVM Calculations:

uity is a series of cash flows in which you make a lump sum payment or series of payments and in return obtain regu
either immediately (annuity due) or at some point in the future.

sumptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment is one perio

1  (1  r )  n 
PV Annuity  P 
 r 
ent, r = periodic rate, and n = no of periods.

ptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment is TODAY)::

1  (1  r )  ( n 1) 
PV AnnuityDue  PVAnnuity (1  r )  P  P  
 r 

sumptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment is one perio

 (1  r ) n  1
FVAnnuity  P 
 r 
ptions: 1) The periodic payment does not change, 2) The rate does not change, 3) The first payment is TODAY)::

 (1  r ) n  1 
FV AnnuityDue  FV Annuity (1  r )  (1  r ) P  
 r 

nnuity like cash flows, if there is a payment at the end of the period in addition to the annuity (periodic) payment,
PV calculations accordingly. So for example, if there is a payment FV occurring at the end of the n periods,
ity is adjusted by the PV of the final lump sum payment.

1  (1  r )  n  FV
PV Annuity  FVatEnd  P  
 (1  r )
n
 r

eriodic payments, simply put the Periodic Payment = 0

yment, simply reverse the appropriate formula (depending on if the problem involves PV or FV)
mply reverse the appropriate formula (depending on if the problem involves PV or FV).
n TVM Calculations:

ments and in return obtain regular

The first payment is one period away):

first payment is TODAY)::

The first payment is one period away):

first payment is TODAY)::

nnuity (periodic) payment,

e end of the n periods,
a) Suppose you signed a contract for a special assignment over the next 13 years. You will be paid $14,844 at the en

b) You need a loan to purchase new equipment. The load will be paid off over 4 years with payments made at the en

c) You would like to purchase a car for $29747. If the car loan in 3% financed over 3 years, what will the monthly pay

d) What is the most that you would pay for an investment that promises to pay $8845 a year forever with the first p

e) A loan has a stated annual rate of 13%. If loan payments are made monthly and interest is compounded monthly,
You will be paid $14,844 at the end of each year. If your required rate of return is 17.00%, what is the contract worth in today?

ars with payments made at the end of every quarter. If the stated annual rate is 23% and quarterly payments are $474, what is

3 years, what will the monthly payments be for this car?

845 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investm

interest is compounded monthly, what is the effective annual rate of interest?

at is the contract worth in today?

rterly payments are $474, what is the load amount?

ired rate of return for this investment is 12%