Calculate the monthly payment loan amortization table.
Loan $26,000
Down Payment $5,000
11% for 36 months
To calculate the monthly payment for a loan with specific terms, you can use the formula for calculating the monthly payment of an amortizing loan.
Here's the formula:
P = (r * PV) / (1 - (1 + r)^(-n))
Where:
P = Monthly payment
PV = Present value or loan amount
r = Monthly interest rate (annual interest rate divided by 12)
n = Total number of months
Let's plug in the values for your loan:
PV (Present value or loan amount) = $26,000 - $5,000 (down payment) = $21,000
r (Monthly interest rate) = 11% / 12 (since it's an annual interest rate divided by 12 months) = 0.00917
n (Total number of months) = 36
Now, let's use the formula to calculate the monthly payment:
P = (0.00917 * $21,000) / (1 - (1 + 0.00917)^(-36))
P = $674.50 (rounded to two decimal places)
Therefore, the monthly payment for a $26,000 loan with a down payment of $5,000 and an interest rate of 11% for 36 months would be approximately $674.50.
To create a loan amortization table, you can break down the monthly payment into principal and interest components for each month. You'll need to calculate the interest portion, principal portion, and the remaining loan balance for each month.
Here's a sample loan amortization table for the first few months:
Month | Payment | Interest | Principal | Balance
----------------------------------------------
1 | $674.50 | $192.50 | $482.00 | $20,518.00
2 | $674.50 | $187.40 | $487.10 | $20,030.90
3 | $674.50 | $182.13 | $492.37 | $19,538.53
4 | $674.50 | $176.68 | $497.82 | $19,040.71
...
You can continue this process for each subsequent month until the loan is fully paid off.