Corey buys 10 Tufflift 4-post,4.5-ton car hoists for his parking garage at a total cost of $410,000.He finances this with a five-year loan at 6.2% APR with monthly payments.After he has made the first 20 payments,how much is the outstanding principal balance on his loan?

Question

Quizplus · Accepted Answer

First, we need to calculate the monthly payment using the loan amount, APR, and loan term:
Loan amount = $410,000
APR = 6.2%
Loan term = 5 years = 60 months

Using a loan calculator, the monthly payment is $7,953.82

After making 20 payments (20 months), Corey would have paid a total of:
20 x $7,953.82 = $159,076.40

We can use an amortization schedule to determine the outstanding principal balance after 20 months. Using the schedule, we find that the outstanding principal balance is $287,153. Therefore, the answer is C) $287,153.

Corey Buys 10 Tufflift 4-Post,4