Please explain how they got the numbers in the graph with out using excel becaus
ID: 2809965 • Letter: P
Question
Please explain how they got the numbers in the graph with out using excel because excel was not allowed. Thanks Problem #2 (20 pts) Suppose you are in the market for a new car worth $ 22,000. You are $2,000 down months with an APR of 10%. offered a deal to make a payment now and to pay the balance in equal end-of-month payments over 60 a. What should be the required monthly payment? : 20,000 N: 60. 24.5A b. Complete the following table as you expect the dealer to calculate the values. End of Month Interest Payment Principal Payment Remaining Balance $130.00 294,5G | 15301, 03 17Explanation / Answer
APR=10% 0.1 i= Monthly interest =(10/12)% 0.00833333 N= Number of Months 60 Capital Recovery factor: (A/P, i, N) (i*((1+i)^N)/(((1+i)^N)-1) i=0.0083333 N=60 CRF Capital Recovery Factor (0.008333*(1.008333^60))/((1.008333^60)-1) CRF=0.021247 Present Value(PV) of Loan $20,000 (22000-2000) Monthly Payment =CRF*PV of Loan Monthly Payment $424.94 (20000*0.021247) REQUIRED MONTHLY PAYMENT $424.94 A B=A*0.008333 C=424.94-B D=A-C End of Month Beginning Balance Interest Payment Principal Payment Remaining Balance 0 $20,000 1 $20,000 $166.67 $258.27 $19,741.73 2 $19,741.73 $164.51 $260.43 $19,481.30 3 $19,481.30 $162.34 $262.60 $19,218.71 4 $19,218.71 $160.16 $264.78 $18,953.92 5 $18,953.92 $157.95 $266.99 $18,686.93 6 $18,686.93 $155.72 $269.22 $18,417.71 7 $18,417.71 $153.48 $271.46 $18,146.26 8 $18,146.26 $151.22 $273.72 $17,872.53 9 $17,872.53 $148.94 $276.00 $17,596.53 10 $17,596.53 $146.64 $278.30 $17,318.23 11 $17,318.23 $144.32 $280.62 $17,037.61 12 $17,037.61 $141.98 $282.96 $16,754.65 13 $16,754.65 $139.62 $285.32 $16,469.33 14 $16,469.33 $137.24 $287.70 $16,181.64 15 $16,181.64 $134.85 $290.09 $15,891.54 16 $15,891.54 $132.43 $292.51 $15,599.03 17 $15,599.03 $129.99 $294.95 $15,304.08 18 $15,304.08 $127.53 $297.41 $15,006.68 19 $15,006.68 $125.06 $299.88 $14,706.79 20 $14,706.79 $122.56 $302.38 $14,404.41 21 $14,404.41 $120.04 $304.90 $14,099.51 22 $14,099.51 $117.50 $307.44 $13,792.06 23 $13,792.06 $114.93 $310.01 $13,482.06 24 $13,482.06 $112.35 $312.59 $13,169.47 25 $13,169.47 $109.75 $315.19 $12,854.27 26 $12,854.27 $107.12 $317.82 $12,536.45 27 $12,536.45 $104.47 $320.47 $12,215.98 28 $12,215.98 $101.80 $323.14 $11,892.84 29 $11,892.84 $99.11 $325.83 $11,567.01 30 $11,567.01 $96.39 $328.55 $11,238.46 31 $11,238.46 $93.65 $331.29 $10,907.17 32 $10,907.17 $90.89 $334.05 $10,573.13 33 $10,573.13 $88.11 $336.83 $10,236.30 34 $10,236.30 $85.30 $339.64 $9,896.66 35 $9,896.66 $82.47 $342.47 $9,554.19 36 $9,554.19 $79.62 $345.32 $9,208.87 37 $9,208.87 $76.74 $348.20 $8,860.67 38 $8,860.67 $73.84 $351.10 $8,509.57 39 $8,509.57 $70.91 $354.03 $8,155.54 40 $8,155.54 $67.96 $356.98 $7,798.57 41 $7,798.57 $64.99 $359.95 $7,438.61 42 $7,438.61 $61.99 $362.95 $7,075.66 43 $7,075.66 $58.96 $365.98 $6,709.69 44 $6,709.69 $55.91 $369.03 $6,340.66 45 $6,340.66 $52.84 $372.10 $5,968.56 46 $5,968.56 $49.74 $375.20 $5,593.36 47 $5,593.36 $46.61 $378.33 $5,215.03 48 $5,215.03 $43.46 $381.48 $4,833.55 49 $4,833.55 $40.28 $384.66 $4,448.89 50 $4,448.89 $37.07 $387.87 $4,061.02 51 $4,061.02 $33.84 $391.10 $3,669.92 52 $3,669.92 $30.58 $394.36 $3,275.56 53 $3,275.56 $27.30 $397.64 $2,877.92 54 $2,877.92 $23.98 $400.96 $2,476.96 55 $2,476.96 $20.64 $404.30 $2,072.66 56 $2,072.66 $17.27 $407.67 $1,665.00 57 $1,665.00 $13.87 $411.07 $1,253.93 58 $1,253.93 $10.45 $414.49 $839.44 59 $839.44 $7.00 $417.94 $421.50 60 $421.50 $3.51 $421.43 $0.07 Remaining Balance at the end of 60months should be ZERO $0.07 balance is due to errors in approximation