Engineering Economic Analysis
Engineering Economic Analysis
13th Edition
ISBN: 9780190296902
Author: Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle
Publisher: Oxford University Press
Question
Book Icon
Chapter 4, Problem 107P
To determine

Tabular Representation of the balance due, principal payment, and interest rate.

Expert Solution & Answer
Check Mark

Answer to Problem 107P

The monthly payment is $77.46 and the interest paid in the last month is $0.39.

Explanation of Solution

Given information:

  • Loan Amount - $15,000
  • Time period − 36 months & 60 months.
  • Rate of Interest − 8.9% per annum.
  • Capital Recovery Factor:

The capital recovery factor is used to find the uniform annual amount A of a uniform series from a known present worth at the given interest rate i. It is calculated as:

A=Pi(1+i)n(1+i)n1=P(A/P,i,n).

Calculation:

  • For 36 months
  • The loan amount is $15,000. The monthly payments are to be made, therefore, the rate of interest will be divided by 12

    RoI=(8.9%)/12=0.741%MonthlyPayment=P(A/P,i,n)=$476.30

Months Total Payment Principal Interest Rate Opening Balance Closing Balance
1 476.30 365.05 111.25 15000.00 14634.95
2 476.30 367.76 108.54 14634.95 14267.20
3 476.30 370.48 105.82 14267.20 13896.71
4 476.30 373.23 103.07 13896.71 13523.48
5 476.30 376.00 100.30 13523.48 13147.48
6 476.30 378.79 97.51 13147.48 12768.70
7 476.30 381.60 94.70 12768.70 12387.10
8 476.30 384.43 91.87 12387.10 12002.67
9 476.30 387.28 89.02 12002.67 11615.39
10 476.30 390.15 86.15 11615.39 11225.24
11 476.30 393.04 83.25 11225.24 10832.20
12 476.30 395.96 80.34 10832.20 10436.24
13 476.30 398.90 77.40 10436.24 10037.34
14 476.30 401.85 74.44 10037.34 9635.49
15 476.30 404.83 71.46 9635.49 9230.65
16 476.30 407.84 68.46 9230.65 8822.82
17 476.30 410.86 65.44 8822.82 8411.95
18 476.30 413.91 62.39 8411.95 7998.04
19 476.30 416.98 59.32 7998.04 7581.06
20 476.30 420.07 56.23 7581.06 7160.99
21 476.30 423.19 53.11 7160.99 6737.80
22 476.30 426.33 49.97 6737.80 6311.48
23 476.30 429.49 46.81 6311.48 5881.99
24 476.30 432.67 43.62 5881.99 5449.32
25 476.30 435.88 40.42 5449.32 5013.43
26 476.30 439.12 37.18 5013.43 4574.32
27 476.30 442.37 33.93 4574.32 4131.95
28 476.30 445.65 30.65 4131.95 3686.29
29 476.30 448.96 27.34 3686.29 3237.34
30 476.30 452.29 24.01 3237.34 2785.05
31 476.30 455.64 20.66 2785.05 2329.41
32 476.30 459.02 17.28 2329.41 1870.38
33 476.30 462.43 13.87 1870.38 1407.96
34 476.30 465.86 10.44 1407.96 942.10
35 476.30 469.31 6.99 942.10 472.79
36 476.30 472.79 3.51 472.79 0.00
  • For 60 months
The loan amount is $15,000. The monthly payments are to be made, therefore, the rate of interest will be divided by 12

RoI=(8.9%)/12=0.741%MonthlyPayment=P(A/P,i,n)=$310.65

Months Total Payment Principal Interest Rate Opening Balance Closing Balance
1 310.65 199.40 111.25 15000.00 14800.60
2 310.65 200.88 109.77 14800.60 14599.73
3 310.65 202.37 108.28 14599.73 14397.36
4 310.65 203.87 106.78 14397.36 14193.49
5 310.65 205.38 105.27 14193.49 13988.11
6 310.65 206.90 103.75 13988.11 13781.21
7 310.65 208.44 102.21 13781.21 13572.77
8 310.65 209.98 100.66 13572.77 13362.79
9 310.65 211.54 99.11 13362.79 13151.25
10 310.65 213.11 97.54 13151.25 12938.14
11 310.65 214.69 95.96 12938.14 12723.45
12 310.65 216.28 94.37 12723.45 12507.17
13 310.65 217.89 92.76 12507.17 12289.28
14 310.65 219.50 91.15 12289.28 12069.78
15 310.65 221.13 89.52 12069.78 11848.65
16 310.65 222.77 87.88 11848.65 11625.88
17 310.65 224.42 86.23 11625.88 11401.46
18 310.65 226.09 84.56 11401.46 11175.37
19 310.65 227.76 82.88 11175.37 10947.60
20 310.65 229.45 81.19 10947.60 10718.15
21 310.65 231.15 79.49 10718.15 10487.00
22 310.65 232.87 77.78 10487.00 10254.13
23 310.65 234.60 76.05 10254.13 10019.53
24 310.65 236.34 74.31 10019.53 9783.19
25 310.65 238.09 72.56 9783.19 9545.10
26 310.65 239.85 70.79 9545.10 9305.25
27 310.65 241.63 69.01 9305.25 9063.62
28 310.65 243.43 67.22 9063.62 8820.19
29 310.65 245.23 65.42 8820.19 8574.96
30 310.65 247.05 63.60 8574.96 8327.91
31 310.65 248.88 61.77 8327.91 8079.03
32 310.65 250.73 59.92 8079.03 7828.30
33 310.65 252.59 58.06 7828.30 7575.71
34 310.65 254.46 56.19 7575.71 7321.25
35 310.65 256.35 54.30 7321.25 7064.90
36 310.65 258.25 52.40 7064.90 6806.65
37 310.65 260.17 50.48 6806.65 6546.48
38 310.65 262.09 48.55 6546.48 6284.39
39 310.65 264.04 46.61 6284.39 6020.35
40 310.65 266.00 44.65 6020.35 5754.35
41 310.65 267.97 42.68 5754.35 5486.38
42 310.65 269.96 40.69 5486.38 5216.43
43 310.65 271.96 38.69 5216.43 4944.47
44 310.65 273.98 36.67 4944.47 4670.49
45 310.65 276.01 34.64 4670.49 4394.48
46 310.65 278.06 32.59 4394.48 4116.43
47 310.65 280.12 30.53 4116.43 3836.31
48 310.65 282.20 28.45 3836.31 3554.12
49 310.65 284.29 26.36 3554.12 3269.83
50 310.65 286.40 24.25 3269.83 2983.43
51 310.65 288.52 22.13 2983.43 2694.91
52 310.65 290.66 19.99 2694.91 2404.25
53 310.65 292.82 17.83 2404.25 2111.43
54 310.65 294.99 15.66 2111.43 1816.44
55 310.65 297.18 13.47 1816.44 1519.27
56 310.65 299.38 11.27 1519.27 1219.89
57 310.65 301.60 9.05 1219.89 918.29
58 310.65 303.84 6.81 918.29 614.45
59 310.65 306.09 4.56 614.45 308.36
60 310.65 308.36 2.29 308.36 0.00

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Chapter 4 Solutions

Engineering Economic Analysis

Ch. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 19PCh. 4 - Prob. 20PCh. 4 - Prob. 21PCh. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 45PCh. 4 - Prob. 46PCh. 4 - Prob. 47PCh. 4 - Prob. 48PCh. 4 - Prob. 49PCh. 4 - Prob. 50PCh. 4 - Prob. 51PCh. 4 - Prob. 52PCh. 4 - Prob. 53PCh. 4 - Prob. 54PCh. 4 - Prob. 55PCh. 4 - Prob. 56PCh. 4 - Prob. 57PCh. 4 - Prob. 58PCh. 4 - Prob. 59PCh. 4 - Prob. 60PCh. 4 - Prob. 61PCh. 4 - Prob. 62PCh. 4 - Prob. 63PCh. 4 - Prob. 64PCh. 4 - Prob. 65PCh. 4 - Prob. 66PCh. 4 - Prob. 67PCh. 4 - Prob. 68PCh. 4 - Prob. 69PCh. 4 - Prob. 70PCh. 4 - Prob. 71PCh. 4 - Prob. 72PCh. 4 - Prob. 73PCh. 4 - Prob. 74PCh. 4 - Prob. 75PCh. 4 - Prob. 76PCh. 4 - Prob. 77PCh. 4 - Prob. 78PCh. 4 - Prob. 79PCh. 4 - Prob. 80PCh. 4 - Prob. 81PCh. 4 - Prob. 82PCh. 4 - Prob. 83PCh. 4 - Prob. 84PCh. 4 - Prob. 85PCh. 4 - Prob. 86PCh. 4 - Prob. 87PCh. 4 - Prob. 88PCh. 4 - Prob. 89PCh. 4 - Prob. 90PCh. 4 - Prob. 91PCh. 4 - Prob. 92PCh. 4 - Prob. 93PCh. 4 - Prob. 94PCh. 4 - Prob. 95PCh. 4 - Prob. 96PCh. 4 - Prob. 97PCh. 4 - Prob. 98PCh. 4 - Prob. 99PCh. 4 - Prob. 100PCh. 4 - Prob. 101PCh. 4 - Prob. 102PCh. 4 - Prob. 103PCh. 4 - Prob. 104PCh. 4 - Prob. 105PCh. 4 - Prob. 106PCh. 4 - Prob. 107PCh. 4 - Prob. 108PCh. 4 - Prob. 109PCh. 4 - Prob. 110PCh. 4 - Prob. 111PCh. 4 - Prob. 112PCh. 4 - Prob. 113PCh. 4 - Prob. 114PCh. 4 - Prob. 115PCh. 4 - Prob. 116PCh. 4 - Prob. 117PCh. 4 - Prob. 118PCh. 4 - Prob. 119PCh. 4 - Prob. 120PCh. 4 - Prob. 121PCh. 4 - Prob. 122PCh. 4 - Prob. 123PCh. 4 - Prob. 124PCh. 4 - Prob. 125PCh. 4 - Prob. 126P
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education