You have just purchased a car and taken out a $ 37 comma 000 loan. The loan has a five-year term with monthly payments and an APR of 5.7 %.
a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.)
b. How much will you pay in interest, and how much will you pay in principal, during the fourth year (i.e., between three and four years from now)?
(Note: Be careful not to round any intermediate steps less than six decimal places.)
a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year? (Hint: Compute the loan balance after one month, two months, and one year.)
During the first month, you will pay $
nothing in principal. (Round to the nearest cent.)
I will assume that this is compound interest.
Have you calculated the monthly payment? You will need it to answer the first part