Suppose you finance a brand new Chevrolet Colorado for 37000

Suppose you finance a brand new Chevrolet Colorado for $37,000. With a good credit, the dealer provides the financing rate of 5% with the agreement that you will have to make 3 equal payments. Show the amortization table. Hint: the ending balance at the end of third period must be zero.

Solution

Month EMI Principal Interest Principal Outstanding 1 13586.71689 11736.72 1850 25263.28311 2 13586.71689 12323.55 1263.164 12939.73037 3 13586.71689 12939.73 646.9865 0