Suppose you take out a five-year car loan for $13000, paying an annual interest rate of 5%. You make monthly payments of $245 for this loan.

Complete the table below as you pay off the loan.

Months Amount still owed

5% Interest on amount still owed
(Remember to divide by 12 for monthly interest)

Amount of monthly payment that goes toward paying off the loan (after paying interest)
0 13000
1
2
3
4
5
6
7
8
9
10
11
12    

What is the total amount paid in interest over this first year of the loan?

License