Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:You are looking to purchase a Tesla Model X sport utility
vehicle. The price of the vehicle is $94, 500. You
negotiate a six-year loan, with no money down and no
monthly payments during the first year. After the first
year, you will pay $1,400 per month for the following
five years, with a balloon payment at the end to cover
the remaining principal on the loan. The APR on the
loan with monthly compounding is 3.6 percent. What
will be the amount of the balloon payment six years
from now? Thank you!
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