Finance Question

Question

You have just purchased a car and taken out a $39,000 loan. The loan has a five-year term with monthly payments and an APR of 6.2%. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? How much will you pay in interest, and how much will you pay in principal, during the fourth year(i.e., between three and four years from now)?

Answer 1

If you have a TI - 83 plus or a TI - 84 plus, there is a key sequence using the 'APPS' button that will let you put in the particulars and do an amortization problem for you.

 

Without the calculator program, there are formulae in the text or on-line. I am not handy enough with the syntax of this medium to express the formulae for you in this reply.