The following table shows a portion of a three-yea (2024)

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The following table shows a portion of a three-yea (10)Answered step-by-step

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The following table shows a portion of a three-year amortization schedule.3-year amortization schedule. Loan amount or principal: 12,240 dollars. Interest rate on loan: 8.71 percent. A 5-column table with 7 rows. Column 1 is labeled Month with entries 13, 14, 15, 16, 17, 18, 19. Column 2 is labeled payment and all entries are 387 dollars and 58 cents. Column 3 is labeled Principal with entries 325.82, 328.19, 330.57, 332.97, 335.38, 337.82, 340.27. Column 4 is labeled Interest with entries 61.76, 59.39, 57.01, 54.61, 52.19, 49.76, 47.31. Column 5 is labeled Balance with entries 8,182.71, 7,854.52, 7,523.95, 7,190.99, 6,855.60, 6,517.78, 6,177.51.Use the information in the table to decide which of the following statements is true.a.The payment amount changes each month.b.The amount applied to the principal is decreasing each month.c.The amount applied to the principal is increasing each month.d.The amount applied to interest is increasing each month.

Answer

The following table shows a portion of a three-yea (13)Solved

Solution Steps

To determine which statement is true, we need to analyze the given amortization schedule. Specifically, we should look at the "Principal" and "Interest" columns to see how the amounts applied to the principal and interest change each month.

  1. Check if the payment amount changes each month.
  2. Check if the amount applied to the principal is decreasing each month.
  3. Check if the amount applied to the principal is increasing each month.
  4. Check if the amount applied to interest is increasing each month.

Step 1: Check if the payment amount changes each month

The payment amounts are given as:\[ \text{payments} = [387.58, 387.58, 387.58, 387.58, 387.58, 387.58, 387.58] \]

Since all payment amounts are equal, the payment amount does not change each month.

Step 2: Check if the amount applied to the principal is decreasing each month

The principal amounts are given as:\[ \text{principal} = [325.82, 328.19, 330.57, 332.97, 335.38, 337.82, 340.27] \]

We observe that:\[ 325.82 < 328.19 < 330.57 < 332.97 < 335.38 < 337.82 < 340.27 \]

Since each subsequent principal amount is greater than the previous one, the amount applied to the principal is increasing each month.

Step 3: Check if the amount applied to interest is increasing each month

The interest amounts are given as:\[ \text{interest} = [61.76, 59.39, 57.01, 54.61, 52.19, 49.76, 47.31] \]

We observe that:\[ 61.76 > 59.39 > 57.01 > 54.61 > 52.19 > 49.76 > 47.31 \]

Since each subsequent interest amount is less than the previous one, the amount applied to interest is decreasing each month.

Final Answer

Based on the analysis, the correct statement is:\[ \boxed{\text{c. The amount applied to the principal is increasing each month.}} \]

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🔥Questions asked by other users

The following table shows a portion of a three-yea (14)Answered

You have taken out a 60 -month, $\$ 20,000$ car loan with an APR of $6 \%$, compounded monthly. The monthly payment on the loan is $\$ 386.66$. Assume that right after you make your 50 th payment, the balance of the loan is $\$ 3,762.36$. How much of your next payment goes toward principal and how much goes toward interest? Compare this with the prinicipal and interest paid in the first month's payment. (Note: Be careful not to round any intermediate steps less than six decimal places.)The amount that goes towards interest is $\$ 18.81$. (Round to the nearest cent.)The amount that goes towards the principal is $\$ 367.85$. (Round to the nearest cent.)Compare this with the prinicipal and interest paid in the first month's payment. (Select the best choice below.)A. In the first month, the amount that goes towards principal is $\$ 286.66$ and toward interest is $\$ 100.00$. Therefore, you can see that over time, as you pay down the principal of the loan, more of your payment has to go to cover interest and less of your payment can go towards reducing the principal.B. In the first month, the amount that goes towards principal is $\$ 100.00$ and toward interest is $\$ 286.66$. Therefore, you can see that over time, as you pay down the principal of the loan, more of your payment has to go to cover interest and less of your payment can go towards reducing the principal.C. In the first month, the amount that goes towards principal is $\$ 286.66$ and toward interest is $\$ 100.00$. Therefore, you can see that over time, as you pay down the principal of the loan, less of your payment has to go to cover interest and more of your payment can go towards reducing the principal.

The following table shows a portion of a three-yea (15)Answered

Consider a $8,700 loan with payments every month, an APR of 9%, and a loan term of 10 years.a. Construct a table showing the interest payment and loan balance after each month. Verify that, with monthly payments of $110.21, the loan balance reaches $0 after 120 months.b. How much interest is paid in the first month of the loan? How much is paid toward the principal in the first month of the loan?c. How much interest is paid in the last month of the loan? How much is paid toward the principal in the last month of the loan?Part 1a. Complete the table below for the first three months.(Round to the nearest cent as needed.)Part 2 Part 3Month Amount Paid Interest Principal Balance0 $8,7001 $110.21 $ 65.25 $ 44.96 $ 8,655.042 $110.21 $ 64.91 $ 45.30 $ 8609.743 $110.21 $ 64.57 $ 45.64 $ 8564.10Part 4Complete the table below for the last three months.(Round to the nearest cent as needed.)Part 5 Part 6Month Amount Paid Interest Principal Balance118 $110.21 $ 2.44 $ 107.77 $ 217.57119 $110.21 $ 1.63 $ 108.58 $ 108.99120 $109.81 $ 0.82 $ 108.99 $0Part 7b. The interest paid in the first month is $ 65.25.(Round to the nearest cent as needed.)Part 8The principal paid in the first month is $ 44.96.(Round to the nearest cent as needed.)Part 9c. The interest paid in the last month is $ 0.82.(Round to the nearest cent as needed.)Part 10The principal paid in the last month is $ 108.99.(Round to the nearest cent as needed.)

The following table shows a portion of a three-yea (16)Answered

f(0)=4f(x)=0 x=â–¡f^{-1}(0)=â–¡f^{-1}(x)=0 x=â–¡

The following table shows a portion of a three-yea (17)Answered

\[3 \frac{1}{4}+4 \frac{1}{4}\]the sum of\[\frac{4}{15}+\frac{8}{12}+\frac{2}{4}\]$9 \frac{4}{10}+4 \frac{4}{1}$

The following table shows a portion of a three-yea (18)Answered

A nurse at a local hospital is interested in estimating the birth weight of infants. How large a sample must she select if she desires to be 90​% confident that the true mean is within 4 ounces of the sample​ mean? The population standard deviation of the birth weights is known to be 8 ounces.Question content area bottomPart 1A.1111B.44C.1010D.33

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