Answer:
The answer is: $7,757.22 of the third month's payment will go toward the repayment of principal
Explanation:
Using the information given;
- loan principal $100,000
- 12 monthly payments of $9,456
We must first determine the APR, using an excel spreadsheet function:
=RATE(nper,pmt,pv) = RATE(12,-9456,100000) = 2% per month
Then we make an amortization table.
<u>M Beginning bce. scheduled pmt principal interest ending bce</u>
1 $100,000 $9,456 $7,456 $2,000 $92,544
2 $92,544 $9,456 $7,605.12 $1,850.88 $84,938.88
3 $84,938.88 $9,456 $7,757.22 $1,698.78 $77,181.66
