4. Monty Ricker obtained a Payment
used car loan of $6,000.00
Amount for Amount for Balance
Number
Payment
Interest Principal $2,400.00
at 8% for 36 months. The
1 $414.00 $24.00 $390.00 $2,010.00
monthly payment is $187.80. 2 414.00 20.10
The balance of the loan after
3 414.00
12 payments is $4,159.90.
4 414.00
The balance after the 34th
5 414.00
payment is $380.60.
6
a. What is the interest for
the first payment?
b. What is the interest for the 13th payment?
c. Explain why the interest is so different for the
two payments.
d. What is the balance after the 35th payment?