Question

You have just taken out an installment loan for $100,000. Assume that the loan will be repaid in 12 equal monthly installments of $9,456 and that the first payment will be due one month from today. How much of your third monthly payment will go toward the repayment of principal

Answer 1

$7,757.16

Step-by-step explanation:

rate of interest = 2%

Rate(12, 9456-100000)

Rate(nper,pmt,pv)

APR = 24.00%

(Rate*12)

Principal for third monthly payment = PPMT(2%,3,12,-100000)

= $7,757.16