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.
Added by Carolina B.
Step 1
The annual interest rate is 5.4%, which needs to be converted to a monthly rate. Since there are 12 months in a year, divide the annual rate by 12. Monthly interest rate = 5.4% / 12 = 0.45% or 0.0045 in decimal form. Show more…
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Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced. Assume that you take out a $9000 loan for 54 months at 8.5% APR. How much total interest will you have paid at the end of the 54 months? (Round your answer to the nearest cent.)
You want to take out a $150,000 mortgage. The interest rate on the loan is 5% and the loan is for 30 years. How much is your monthly payment going to be? Round to the nearest penny.
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