ali obtained a 36 month loan of 4,350 for a used car. the interest rate is 8%. his monthly payment is 124.62. what is the payment to principal for the first payment

Question

Mathematics

Ulises

2 May, 18:22

ali obtained a 36 month loan of 4,350 for a used car. the interest rate is 8%. his monthly payment is 124.62. what is the payment to principal for the first payment

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Patience · Answer 1

8 % of 4350 is a rate of $348 / yr or $29 per month.

So 124.62 - 29 = 95.62 towards the principal for the 1st month.

That would leave a balance due of 4350 - 95.62 = 4254.38.

4254.38 *.08 = 340.35.

340.35 / 12 = 28.36 interest to be paid in the second month with

124.62 - 28.36 = 96.26 going towards payment of the principal.