How much principal do you pay in the second period

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Reference no: EM13938323

You purchase a $20,000 car, agreeing to make 60 monthly payments over the next five years. You are charged an interest rate of 6% APR, compounded monthly. Given this information, answer the following questions:

a) What are your monthly payments?

b) How much interest do you owe during the second period (month 2)?

c) How much principal do you pay in the second period?

d) After 24 months, you wish to pay off the remainder of the principal. How much do you still owe?

Reference no: EM13938323

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