Question

If you take out a $15,000 loan for a period of 36 months at a 5.4% annual interest rate, how much of your first monthly payment will go toward the *balance*? Round your answer to the nearest cent as necessary and do not include the dollar sign.

Answer 1

Answer:

the answer is 384.76

Step-by-step explanation:

the other answer was wrong for me

Answer 2

Answer:

The amount that will go towards the balance is 385.71.

Step-by-step explanation:

The information provided is:

P = Principal of loan = $15,000

r = interest rate = 5.4% p.a. = $\frac{0.054}{12}= 0.0045$

n = number of periods = 36

The amount of the monthly payment that will go towards the balance is:

Amount towards the balance = EMI - Interest  

First compute the Equated monthly installments (EMI) as follows:

$EMI=\frac{P\times r\times (1+r)^{n}}{(1+r)^{n}-1} \\=\frac{15000\times0.0045\times(1+0.0045)^{36}}{(1+0.0045)^{36}-1} \\=\frac{79.3125}{0.175}\\=453.21$

Now compute the interest as follows:

$Interest=P\times r\\=15000\times0.0045\\=67.5$

The amount that will go towards the balance is,

Amount towards the balance = EMI - Interest  

                                                 = 453.21 - 67.5

                                                 = 385.71

Thus, the amount that will go towards the balance is 385.71.