BDO Savings Account FEATURES Minimum Initial Deposit Php 2,000.00 Minimum MADB Requirement (1) Php 2,000.00 Minimum Balance to Earn Interest Php 5,000.00 Gross Interest Rate Per Annum 0.25% (1) MADB - Monthly Average Daily Balance Transaction Record for March 1-31 Day March I Transaction Balance Deposited 2oo With &raw 100 Deposit 15Uo 2000 March 7 lo00 3500 March 20

☐ Your company plans to buy a new vehicle, with a loan payment of $400 per month for 60 months. You estimate that the cost of gas will be $50 in the first month and increase by 1% each month. What is the present equivalent of the loan and gas costs for the vehicle over the 60 months of the loan, assuming an interest rate of 8%? Typed numeric answer will be automatically saved.

Answer was not A or D

Joel borrows $60,000 at 7% interest per year for a 10-year period. He can make payments of $450 at the beginning of each month until the loan is closed. He plans on making a balloon payment at the end of the period. What is the expected size of the balloon payment?