Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your...


Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after<br>you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal,<br>and how much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00<br>toward principal and $450.00 toward interest in the first month). What is happening?<br>The amount that goes toward interest is $ 94.81.<br>(Round to the nearest cent.)<br>The amount that goes toward the principal is S<br>(Round to the nearest cent.)<br>

Extracted text: Consider the following loan: a 60-month, $45,000 car loan with a 12% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $9,480.78. How much of your next payment goes toward principal, and how much goes toward interest? Compare this with the principal and interest paid in the first month's payment ($551.00 toward principal and $450.00 toward interest in the first month). What is happening? The amount that goes toward interest is $ 94.81. (Round to the nearest cent.) The amount that goes toward the principal is S (Round to the nearest cent.)

Jun 08, 2022
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