Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment. $ (b) Find the total interest. $ (c) Prepare an amortization schedule for the first two months of the loan. Payment Number Principal Portion Interest Portion Total Payment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at 11.5% interest for four years. (Round your answers to the nearest cent.) (a) Find his monthly payment. $ (b) Find the total interest. $ (c) Prepare an amortization schedule for the first two months of the loan. Payment Number Principal Portion Interest Portion Total Payment Balance 0 $ 1 $ $ $ $ 2 $ $ $ $
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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Question
Wade Ellis buys a new car for $16,447.22. He puts 10% down and obtains a simple interest amortized loan for the rest at at
11.5% interest for four years. (Round your answers to the nearest cent.)
(a) Find his monthly payment.
$
(b) Find the total interest.
$
(c) Prepare an amortization schedule for the first two months of the loan.
$
(b) Find the total interest.
$
(c) Prepare an amortization schedule for the first two months of the loan.
| Payment Number |
Principal Portion |
Interest Portion |
Total Payment |
Balance |
|---|---|---|---|---|
| 0 | $ | |||
| 1 | $ | $ | $ | $ |
| 2 | $ | $ | $ | $ |
Expert Solution
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Amortization is an accounting method used over a certain period of time to gradually reduce the book value of a loan or other intangible asset.
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