Amortization schedule with periodic

payments.

Moulton Motors is advertising the following deal on a new Honda Civic: "Monthly payments of

$454.98

for the next

48

months and this beauty can be yours!" The sticker price of the car is

$19,000.

If you bought the car, what interest rate would you be paying in both APR and EAR terms? What is the amortization schedule of the first six payments?

Question content area bottom

Part 1

If you bought the car, what monthly interest rate would you be paying?

enter your response here%

(Round to four decimal places.)

Part 2

If you bought the car, what annual percentage rate (APR) would you be paying?

enter your response here%

(Round to two decimal places.)

Part 3

If you bought the car, what effective annual rate (EAR) would you be paying?

enter your response here%

(Round to two decimal places.)

Part 4

Prepare the amortization schedule for the first six payments of this car loan. What is the interest expense of the loan in month 1?

$enter your response here

(Round to the nearest cent.)

Part 5

What is the principal reduction of the loan in month 1?

$enter your response here

(Round to the nearest cent.)

Part 6

What is the remaining principal of the loan in month 1?

$enter your response here

(Round to the nearest cent.)

Part 7

What is the interest expense of the loan in the month 2?

$enter your response here

(Round to the nearest cent.)

Part 8

What is the principal reduction of the loan in month 2?

$enter your response here

(Round to the nearest cent.)

Part 9

What is the remaining principal of the loan in month 2?

$enter your response here

(Round to the nearest cent.)

Part 10

What is the interest expense of the loan in the month 3?

$enter your response here

(Round to the nearest cent.)

Part 11

What is the principal reduction of the loan in month 3?

$enter your response here

(Round to the nearest cent.)

Part 12

What is the remaining principal of the loan in month 3?

$enter your response here

(Round to the nearest cent.)

Part 13

What is the interest expense of the loan in the month 4?

$enter your response here

(Round to the nearest cent.)

Part 14

What is the principal reduction of the loan in month 4?

$enter your response here

(Round to the nearest cent.)

Part 15

What is the remaining principal of the loan in month 4?

$enter your response here

(Round to the nearest cent.)

Part 16

What is the interest expense of the loan in the month 5?

$enter your response here

(Round to the nearest cent.)

Part 17

What is the principal reduction of the loan in month 5?

$enter your response here

(Round to the nearest cent.)

Part 18

What is the remaining principal of the loan in month 5?

$enter your response here

(Round to the nearest cent.)

Part 19

What is the interest expense of the loan in the month 6?

$enter your response here

(Round to the nearest cent.)

Part 20

What is the principal reduction of the loan in month 6?

$enter your response here

(Round to the nearest cent.)

Part 21

What is the remaining principal of the loan in month 6? Note that following this procedure you can complete the amortization schedule for the entire

48

payments of the car loan.

$enter your response here

(Round to the nearest cent.)