Homework SourseSuppose 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
Use PMT function to determine the equal payments
| Year | Beg Balance | Total Pmt | Interest | Principal Paid | End Balance |
| 1 | 37,000 | 13,586.72 | 1,850.00 | 11,736.72 | 25,263.28 |
| 2 | 25,263 | 13,586.72 | 1,263.16 | 12,323.55 | 12,939.73 |
| 3 | 12,940 | 13,586.72 | 646.99 | 12,939.73 | 0.00 |
