Tokala graduates from college with a loan of $20,000, which they will repay with equal monthly payments over the next 15 years. The interest rate is 3.6%.
How much is Tokala's monthly payment? Round your answer to the nearest cent.
143.97
Fill in the amortization table below for the first two months of the loan. Round entries to the nearest cent.
interest 1 and 2
principal 1 and 2
balance 1 and 2
Month 1:
- Interest: $20,000 * 0.036 / 12 = $60.00
- Principal: Monthly payment - Interest = $143.97 - $60.00 = $83.97
- Balance: $20,000 - $83.97 = $19,916.03
Month 2:
- Interest: $19,916.03 * 0.036 / 12 = $59.71
- Principal: Monthly payment - Interest = $143.97 - $59.71 = $84.26
- Balance: $19,916.03 - $84.26 = $19,831.77