00:01
To calculate the loan value monthly from payment.
00:06
Create a monthly mortgage schedule.
00:10
Complete the total, incur a total cash outflow net amount after selling the car and understand how the principal and interest portion change over time.
00:22
We will follow these steps.
00:24
Step 1.
00:29
Calculate the loan value.
00:34
Loan value would be purchase price plus tax minus down payment.
00:42
Purchase price is $27 ,000 plus tax is $810.
00:52
Minus $5 ,000 which is $22 ,810.
01:05
Step 2.
01:13
Calculate monthly loan payment.
01:15
So monthly loan payment would be loan value $22 ,810 divide by 0 .00167.
02:16
We multiply it.
02:23
1 minus 1 plus 0 .00167.
02:39
Minus 36.
02:46
Step 3.
02:56
Calculate interest rate.
03:16
Step 3.
03:31
Calculate interest rate.
03:35
Create monthly amortization schedule.
03:40
So we'll create a schedule for all 36 months.
03:48
For month 1 calculation, starting balance would be $22 ,810.
04:03
Payment, we calculated from step 1.
04:13
Starting balance payment is $676 .59.
04:24
Interest payment is $491 .24.
04:32
And ending balance is $22 ,318.
04:49
So we calculated for each month till month 36.
04:56
For month 36, for payment we get $404 .86 starting balance.
05:09
And for payment $676 .59.
05:16
And for principal payment we get $671 .00.
05:26
And for interest we get $5 .59.
05:33
And for the final balance is $0.
05:39
We need to calculate this month wise for month 1, 2, 3, till 36.
05:47
And this is for step 3.
05:51
Step 4.
05:56
Compute the total interest.
05:58
Total sum.
05:59
Total interest.
06:06
Interest of all sum payment.
06:13
Which amounts to $204 ,183.
06:23
Interest payment...