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To estimate the required monthly payment amount for an installment loan, divide the amount to be borrowed by 1,000 and multiply the result by the

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To estimate the required monthly payment amount for an installment loan, divide the amount to be borrowed by 1,000 and multiply the result by the appropriate figure from the table. Suppose that you are repaying an automobile loan in the amount of $23,000. The rate of interest on the loan is 14%, and you have agreed to pay back the loan in 72 monthly payments. using the values in the preceding table, complete the following steps to calculate the required monthly payment amount for this loan. Step 1: Divide the amount of the loan by 1,000. Dividing $23,000 (loan amount) by 1,000 gives you a value of Step 21 Use the rate of interest and the number of monthly payments to identify the appropriate figure to use from the table. In this case, the rate of interest is 14%, and the loan requires 72 monthly payments. Therefore, the relevant amount from the table is $ Step 3: Multiply your answer from Step 1 by the appropriate value from the table cell (from Step 2). This gives you a required monthly payment amount of $ Calculate your total payments and Ninance charge by completing the following table. (Note: Enter al figures as positive numbers to two decimal places.) Total Payments Loan Amount Finance Charge $23,000.00 $ 36 un Monthly Installment Loan Payments to Repay a $1,000, Simple Interest Loan Number of Monthly Payments Rate of Interest 12 24 48 60 72 84 5 $85.61 $43.87 $29.97 $23.03 $18.87 $16.10 $14.13 6 $86.07 $44.32 $30.42 $23.49 $19.33 $16.57 $14.61 7 $86.$3 $44.77 $30.88 $23.95 $19.80 $17.05 $15.09 8 $86.99 $45.23 $31.34 $24.41 $20.28 $17.53 $15.59 9 $87.45 $45.68 $31.80 $24.88 $20.76 $18.03 $16.09 10 $87.92 $46.14 $32.27 $25.36 $21.25 $18.53 $16.60 8 11 $88.38 $46.61 $32.74 $25.85 12 $21.74 $19.03 $17.12 $88.85 $47.07 $33.21 $26.33 13 $22.24 $19.55 $17.65 $89.32 $47.54 $33.69 $26.83 14 $22.75 $20.07 $18.19 $89.79 $27.33 15 $23.27 $20.61 $18.74 $90.26 $27.83 $23.79 16 $21.14 $19.27 $90.73 $28.34 $48.01 $34.18 $48.49 $34.67 $48.96 $35.16 $49.44 $35,65 $49.92 $36.15 $50.41 $36.66 $24.32 17 $21.69 $19.86 $91.20 $28.85 $24.85 18 $22.25 $20.44 $91.68 $29.37 $25.39 $22.81 19 $21.02 $92.16 $29.90 $25.94 $23.38 $21.61

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