Use a spreadsheet or financial program on a calculator or computer to develop the first two rows of an amortization schedule for a 5-year car loan if $16,600 is borrowed at 8%, compounded monthly.

Question

Use a spreadsheet or financial program on a calculator or computer to develop the first two rows of an amortization schedule for a 5-year car loan if $16,600 is borrowed at 8%, compounded monthly. ​

Quizplus · Accepted Answer

Using a financial program, we can calculate that the monthly payment for a 5-year car loan of $16,600 at 8% interest is $337.58. 
In the first row of the amortization schedule, we will input the following information: 
- Payment number: 1 
- Beginning balance: $16,600.00 
- Payment: $337.58 
- Interest: $110.67 
- Principal: $226.91 
- Ending balance: $16,373.09

In the second row of the amortization schedule, we will input the following information: 
- Payment number: 2 
- Beginning balance: $16,373.09 
- Payment: $337.58 
- Interest: $108.98 
- Principal: $228.60 
- Ending balance: $16,144.49

Therefore, the best choice is B, which matches the values calculated above.

Use a Spreadsheet or Financial Program on a Calculator or Computer