C268 Practice Exam Questions
and Answers (Complete Solution)
You have decided to purchase a new car. You plan to take out a loan to pay for the car. The loan
amount is $18,900. You will pay 6.5% interest and will pay off the car in 48 months. You are
interested in calculating the total amount of money and the total amount of interest you will pay
over the course of the loan. To help you with these calculations, you decide to construct an
amortization table. An amortization table provides details about the payment, interest amount,
principle amount, and loan balance for every month of the loan. Complete the amortization
table and the summary calculations below.
Loan Amount -$18,900.00 Loan Summary
Term (months) 48 Total Amount Paid $21,514.21
Interest Rate 6.50% Total Interest Paid $2,614.21
SUM Check Calculation $2,614.21
Payment $448.21 Buy new in Period 36? No
Period Payment Interest Principle Balance
0 $18,900.00
1 $448.21 $102.38 $345.84 $18,554.16
2 $448.21 $100.50 $347.71 $18,206.45
3 $448.21 $98.62 $349.59 $17,856.86
4 $448.21 $96.72 $351.49 $17,505.37
5 $448.21 $94.82 $353.39 $17,151.98
6 $448.21 $92.91 $355.31 $16,796.67
7 $448.21 $90.98 $357.23 $16,439.44
8 $448.21 $89.05 $359.17 $16,080.27
9 $448.21 $87.10 $361.11 $15,719.16
10 $448.21 $85.15 $363.07 $15,356.10
11 $448.21 $83.18 $365.03 $14,991.06
12 $448.21 $81.20 $367.01 $14,624.05
13 $448.21 $79.21 $369.00 $14,255.05
14 $448.21 $77.21 $371.00 $13,884.06
15 $448.21 $75.21 $373.01 $13,511.05
16 $448.21 $73.18 $375.03 $13,136.02
17 $448.21 $71.15 $377.06 $12,758.96
18 $448.21 $69.11 $379.10 $12,379.86
19 $448.21 $67.06 $381.16 $11,998.70
20 $448.21 $64.99 $383.22 $11,615.48
21 $448.21 $62.92 $385.30 $11,230.19
22 $448.21 $60.83 $387.38 $10,842.81
23 $448.21 $58.73 $389.48 $10,453.33
24 $448.21 $56.62 $391.59 $10,061.74
25 $448.21 $54.50 $393.71 $9,668.02
26 $448.21 $52.37 $395.84 $9,272.18
27 $448.21 $50.22 $397.99 $8,874.19
,28 $448.21 $48.07 $400.14 $8,474.05
29 $448.21 $45.90 $402.31 $8,071.74
, 30 $448.21 $43.72 $404.49 $7,667.25
31 $448.21 $41.53 $406.68 $7,260.56
32 $448.21 $39.33 $408.88 $6,851.68
33 $448.21 $37.11 $411.10 $6,440.58
34 $448.21 $34.89 $413.33 $6,027.25
35 $448.21 $32.65 $415.56 $5,611.69
36 $448.21 $30.40 $417.82 $5,193.87
37 $448.21 $28.13 $420.08 $4,773.79
38 $448.21 $25.86 $422.35 $4,351.44
39 $448.21 $23.57 $424.64 $3,926.80
40 $448.21 $21.27 $426.94 $3,499.85
41 $448.21 $18.96 $429.26 $3,070.60
42 $448.21 $16.63 $431.58 $2,639.02
43 $448.21 $14.29 $433.92 $2,205.10
44 $448.21 $11.94 $436.27 $1,768.83
45 $448.21 $9.58 $438.63 $1,330.20
46 $448.21 $7.21 $441.01 $889.19
47 $448.21 $4.82 $443.40 $445.80
48 $448.21 $2.41 $445.80 $0.00
and Answers (Complete Solution)
You have decided to purchase a new car. You plan to take out a loan to pay for the car. The loan
amount is $18,900. You will pay 6.5% interest and will pay off the car in 48 months. You are
interested in calculating the total amount of money and the total amount of interest you will pay
over the course of the loan. To help you with these calculations, you decide to construct an
amortization table. An amortization table provides details about the payment, interest amount,
principle amount, and loan balance for every month of the loan. Complete the amortization
table and the summary calculations below.
Loan Amount -$18,900.00 Loan Summary
Term (months) 48 Total Amount Paid $21,514.21
Interest Rate 6.50% Total Interest Paid $2,614.21
SUM Check Calculation $2,614.21
Payment $448.21 Buy new in Period 36? No
Period Payment Interest Principle Balance
0 $18,900.00
1 $448.21 $102.38 $345.84 $18,554.16
2 $448.21 $100.50 $347.71 $18,206.45
3 $448.21 $98.62 $349.59 $17,856.86
4 $448.21 $96.72 $351.49 $17,505.37
5 $448.21 $94.82 $353.39 $17,151.98
6 $448.21 $92.91 $355.31 $16,796.67
7 $448.21 $90.98 $357.23 $16,439.44
8 $448.21 $89.05 $359.17 $16,080.27
9 $448.21 $87.10 $361.11 $15,719.16
10 $448.21 $85.15 $363.07 $15,356.10
11 $448.21 $83.18 $365.03 $14,991.06
12 $448.21 $81.20 $367.01 $14,624.05
13 $448.21 $79.21 $369.00 $14,255.05
14 $448.21 $77.21 $371.00 $13,884.06
15 $448.21 $75.21 $373.01 $13,511.05
16 $448.21 $73.18 $375.03 $13,136.02
17 $448.21 $71.15 $377.06 $12,758.96
18 $448.21 $69.11 $379.10 $12,379.86
19 $448.21 $67.06 $381.16 $11,998.70
20 $448.21 $64.99 $383.22 $11,615.48
21 $448.21 $62.92 $385.30 $11,230.19
22 $448.21 $60.83 $387.38 $10,842.81
23 $448.21 $58.73 $389.48 $10,453.33
24 $448.21 $56.62 $391.59 $10,061.74
25 $448.21 $54.50 $393.71 $9,668.02
26 $448.21 $52.37 $395.84 $9,272.18
27 $448.21 $50.22 $397.99 $8,874.19
,28 $448.21 $48.07 $400.14 $8,474.05
29 $448.21 $45.90 $402.31 $8,071.74
, 30 $448.21 $43.72 $404.49 $7,667.25
31 $448.21 $41.53 $406.68 $7,260.56
32 $448.21 $39.33 $408.88 $6,851.68
33 $448.21 $37.11 $411.10 $6,440.58
34 $448.21 $34.89 $413.33 $6,027.25
35 $448.21 $32.65 $415.56 $5,611.69
36 $448.21 $30.40 $417.82 $5,193.87
37 $448.21 $28.13 $420.08 $4,773.79
38 $448.21 $25.86 $422.35 $4,351.44
39 $448.21 $23.57 $424.64 $3,926.80
40 $448.21 $21.27 $426.94 $3,499.85
41 $448.21 $18.96 $429.26 $3,070.60
42 $448.21 $16.63 $431.58 $2,639.02
43 $448.21 $14.29 $433.92 $2,205.10
44 $448.21 $11.94 $436.27 $1,768.83
45 $448.21 $9.58 $438.63 $1,330.20
46 $448.21 $7.21 $441.01 $889.19
47 $448.21 $4.82 $443.40 $445.80
48 $448.21 $2.41 $445.80 $0.00
