Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance amount at 2.7% compounded monthly for 6 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Kristen pays an additional $50 per month, how many periods will it take to payoff the load? d) If Kristen pays an additional $50 per month, how much interest will be saved?
Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance amount at 2.7% compounded monthly for 6 years. a) What is the size of payment made at the end of every month to settle the loan? b) What was the amount of interest charged for the entire loan? c) If Kristen pays an additional $50 per month, how many periods will it take to payoff the load? d) If Kristen pays an additional $50 per month, how much interest will be saved?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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