Kelly Robins is considering purchasing a usedautomobile. The price including the title and taxes is$15,455. Kelly is able to make a $2,455 down payment. The balance of $13,000 will be borrowed fromher credit union at an interest rate of 9.45% compounded daily. The loan should be paid in 36 equalmonthly payments. Compute the monthly payment.What is the total amount of interest Kelly has to payover the life of the loan?
Kelly Robins is considering purchasing a usedautomobile. The price including the title and taxes is$15,455. Kelly is able to make a $2,455 down payment. The balance of $13,000 will be borrowed fromher credit union at an interest rate of 9.45% compounded daily. The loan should be paid in 36 equalmonthly payments. Compute the monthly payment.What is the total amount of interest Kelly has to payover the life of the loan?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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Question
Kelly Robins is considering purchasing a used
automobile. The price including the title and taxes is
$15,455. Kelly is able to make a $2,455 down payment. The balance of $13,000 will be borrowed from
her credit union at an interest rate of 9.45% compounded daily. The loan should be paid in 36 equal
monthly payments. Compute the monthly payment.
What is the total amount of interest Kelly has to pay
over the life of the loan?
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