Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $13,000 at 8 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $ Total interest $ (b) 4 years. Payment $ Total interest $ (c) 5 years. Payment Total interest $ X X X X

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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### Loan Term Impact on Amortized Auto Loans

Explore how the duration of a loan influences simple interest amortized auto loans by calculating the monthly payment and total interest for a $13,000 loan at an interest rate of 8 and 7/8%. Ensure all answers are rounded to the nearest cent.

#### Loan Term Scenarios:

(a) **3 Years**
- **Monthly Payment:** $ ________ [Incorrect]
- **Total Interest:** $ ________ [Incorrect]

(b) **4 Years**
- **Monthly Payment:** $ ________ [Incorrect]
- **Total Interest:** $ ________ [Incorrect]

(c) **5 Years**
- **Monthly Payment:** $ ________ [Incorrect]
- **Total Interest:** $ ________ [Incorrect]

Note: The red text "Incorrect" indicates that the answers provided are not accurate and need to be recalculated.
Transcribed Image Text:### Loan Term Impact on Amortized Auto Loans Explore how the duration of a loan influences simple interest amortized auto loans by calculating the monthly payment and total interest for a $13,000 loan at an interest rate of 8 and 7/8%. Ensure all answers are rounded to the nearest cent. #### Loan Term Scenarios: (a) **3 Years** - **Monthly Payment:** $ ________ [Incorrect] - **Total Interest:** $ ________ [Incorrect] (b) **4 Years** - **Monthly Payment:** $ ________ [Incorrect] - **Total Interest:** $ ________ [Incorrect] (c) **5 Years** - **Monthly Payment:** $ ________ [Incorrect] - **Total Interest:** $ ________ [Incorrect] Note: The red text "Incorrect" indicates that the answers provided are not accurate and need to be recalculated.
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