Amortization schedule with periodic

payments.

Moulton Motors is advertising the following deal on a used Honda Accord: "Monthly payments of $211.62 for the next 42 months and this beauty can be yours!" The sticker price of the car is $7,600. 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?

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

%

(Round to five decimal places.)

Part 2

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

%

(Round to two decimal places.)

Part 3

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

%

(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?

(Round to the nearest cent.)

Part 5

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

(Round to the nearest cent.)

Part 6

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

(Round to the nearest cent.)

Part 7

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

(Round to the nearest cent.)

Part 8

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

(Round to the nearest cent.)

Part 9

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

(Round to the nearest cent.)

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

(Round to the nearest cent.)

Part 11

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

(Round to the nearest cent.)

Part 12

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

(Round to the nearest cent.)

Part 13

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

(Round to the nearest cent.)

Part 14

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

(Round to the nearest cent.)

Part 15

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

(Round to the nearest cent.)

Part 16

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

(Round to the nearest cent.)

Part 17

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

(Round to the nearest cent.)

Part 18

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

(Round to the nearest cent.)

Part 19

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

(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.)

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 42 payments of the car loan.