An installment contract for the purchase of a car requires payments of ​$217.43 at the end of each month for 6 years. Interest is 6% per annum compounded monthly. ​(a) What is the amount​ financed? ​(b) How much is the interest​ cost?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An installment contract for the purchase of a car requires payments of
​$217.43
at the end of
each
month
for
6
years. Interest is
6%
per annum compounded monthly.
​(a) What is the amount​ financed?
​(b) How much is the interest​ cost?
 
 
 

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Part 1
​(a) The amount financed is
​$enter your response here.
​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)
Part 2
​(b) The interest is
​$enter your response here.
​(Round the final answer to the nearest cent as needed.
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