Trevor Diaz is looking to purchase a Mercedes Benz SL600 Roadster, whi

QUESTION

Trevor Diaz is looking to purchase a Mercedes Benz SL600 Roadster, which has an invoice price of $121,737 and a total cost of $129,482. Trevor plans to put down $20,000 and will pay the rest by taking on a 5.75 percent five-year bank loan. What is the monthly payment on this auto loan? Prepare an amortization table using Excel.
Cost of new car: $ 129,482 less: Down payment: $ 20,000 Loan amount: $ 109,482 Monthly payment = $ 2,103.89 EMI = P x r x (1 + r)n/((1 + r)n “ 1) EMI = $ 109,482 * 0.004792 * (1+0.004792)^60 / ((1+0.004792)^60 “ 1)) EMI = $ 2,103.89 P= Principal amount of loan r= monthly rate of interest n = loan period in months r= 5.75% per annum r= 5.75/12/100 per month r = 0.004792 n = loan period in months= 5 years * 12 months = 60 months Amortization table Payment # Payment Interest Principle Balance $109,482.00 1 $2,103.91 $524.64 $1,579.27 $107,902.73 2 $2,103.91 $517.07 $1,586.84 $106,315.89 3 $2,103.91 $509.47 $1,594.44 $104,721.44 4 $2,103.91 $501.83 $1,602.08 $103,119.36 5 $2,103.91 $494.15 $1,609.76 $101,509.60 6 $2,103.91 $486.43 $1,617.48 $99,892.12 7 $2,103.91 $478.68 $1,625.23 $98,266.89 8 $2,103.91 $470.89 $1,633.02 $96,633.88 9 $2,103.91 $463.07 $1,640.84 $94,993.04 10 $2,103.91 $455.21 $1,648.70 $93,344.33 11 $2,103.91 $447.31 $1,656.60 $91,687.73 12 $2,103.91 $439.37 $1,664.54 $90,023.19 13 $2,103.91 $431.39 $1,672.52 $88,350.67 14 $2,103.91 $423.38 $1,680.53 $86,670.14 15 $2,103.91 $415.32 $1,688.59 $84,981.55 16 $2,103.91 $407.23 $1,696.68 $83,284.87 17 $2,103.91 $399.10 $1,704.81 $81,580.06 18 $2,103.91 $390.93 $1,712.98 $79,867.08 19 $2,103.91 $382.72 $1,721.19 $78,145.90 20 $2,103.91 $374.48 $1,729.43 $76,416.46 21 $2,103.91 $366.19 $1,737.72 $74,678.74 22 $2,103.91 $357.86 $1,746.05 $72,932.69 23 $2,103.91 $349.49 $1,754.42 $71,178.27 24 $2,103.91 $341.09 $1,762.82¦

$69,415.45 25 $2,103.91 $332.64 $1,771.27 $67,644.18 26 $2,103.91 $324.15 $1,779.76 $65,864.42 27 $2,103.91 $315.62 $1,788.29 $64,076.13 28 $2,103.91 $307.05 $1,796.86 $62,279.27 29 $2,103.91 $298.44 $1,805.47 $60,473.81 30 $2,103.91 $289.79 $1,814.12 $58,659.69 31 $2,103.91 $281.10 $1,822.81 $56,836.87 32 $2,103.91 $272.36 $1,831.55 $55,005.33 33 $2,103.91 $263.59 $1,840.32 $53,165.00 34 $2,103.91 $254.77 $1,849.14 $51,315.86 35 $2,103.91 $245.91 $1,858.00 $49,457.85 36 $2,103.91 $237.00 $1,866.91 $47,590.95 37 $2,103.91 $228.06 $1,875.85 $45,715.09 38 $2,103.91 $219.07 $1,884.84 $43,830.25 39 $2,103.91 $210.03 $1,893.88 $41,936.37 40 $2,103.91 $200.96 $1,902.95 $40,033.42 41 $2,103.91 $191.84 $1,912.07 $38,121.35 42 $2,103.91 $182.68 $1,921.23 $36,200.12 43 $2,103.91 $173.47 $1,930.44 $34,269.68 44 $2,103.91 $164.22 $1,939.69 $32,329.99 45 $2,103.91 $154.93 $1,948.98 $30,381.01 46 $2,103.91 $145.59 $1,958.32 $28,422.68 47 $2,103.91 $136.20 $1,967.71 $26,454.97 48 $2,103.91 $126.77 $1,977.14 $24,477.84 49 $2,103.91 $117.30 $1,986.61 $22,491.22 50 $2,103.91 $107.78 $1,996.13 $20,495.09 51 $2,103.91 $98.21 $2,005.70 $18,489.39 52 $2,103.91 $88.60 $2,015.31 $16,474.09 53 $2,103.91 $78.94 $2,024.97 $14,449.12 54 $2,103.91 $69.24 $2,034.67 $12,414.45 55 $2,103.91 $59.49 $2,044.42 $10,370.03 56 $2,103.91 $49.69 $2,054.22 $8,315.81 57 $2,103.91 $39.85 $2,064.06 $6,251.75 58 $2,103.91 $29.96 $2,073.95 $4,177.80 59 $2,103.91 $20.02 $2,083.89 $2,093.91 60 $2,103.91 $10.03 $2,093.88 $0.04 Totals: $126,234.60 $16,752.64 $109,481.96 $3,386,476.94

 

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