Answer:
a) 1% per month
2) 263.34 dollar per month
3) interest will be of 64,03 in the 20th payment
d) total payment: 2,640.32
Explanation:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 10,000
time 48
a) monthly rate: 12% annual / 12 months per year = 1% = 0.01
[tex]10000 \div \frac{1-(1+0.01)^{-48} }{0.01} = C\\[/tex]
b) C $ 263.338
amortization at the 1st payment:
263.34 - 10,000 x 0.01 = 163.34
at the 20th payment:
163.34 x 1.01^20 = $199.3058
interest: cuota - amortization = 263.34 - 199.31 = 64,03
d) 263.34 x 48 - 10,000 = 2.640,32
