Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid$1,000 down and financed the rest, with the agreement to pay nothing for the entire first year andthen to pay $576.83 at the end of each month over years 2, 3, and 4 (first payment is in 13thmonth).a. What nominal interest rate is Aerotron paying on the loan?%b. What effective interest rate are they paying?%Round your answer to 4 decimal places for a and b. The tolerance is ± 0.0005.c. How much of the 14th month's payment is interest? How much is principal?payment interest = $, and principal = $d. How much of the 18th month's payment is interest? How much is principal?payment interest = $, and principal = $e. How much of the 22nd month's payment is interest? How much is principal?payment interest = $, and principal = $Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5.

A loan refers to a contract where a sum is borrowed on the promise of future repayment along with…

Answered: Aerotron Electronics has just bought a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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