Study Problem Sparky solution

Study Problem Sparky solution - ($5,301.61) Loan Balance...

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Exam Study Problem sees your UA emblem and offers you the deal of the decade. There is zero down and the payments are only $476.80 for 72 months at an interest rate of 4.12% APR compounded monthly. $24,000 Purchase Price $476.80 Monthly Payment 4.12% APR compounded monthly 5.5 years into the loan 0.343% Effective rate per month 66 Number of months in 5.5 years $5,159.71 Balance in 66 months The sign is POSITIVE which means you overpaid the loan and Sparky OWES you $5,159.71!!! ($23,605.60) Loan Balance after 1 month
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Unformatted text preview: ($5,301.61) Loan Balance after 44 months 55.36 Number of months to pay off loan This should have been the payment per month ($376.80) Sun Devil Auto Finance has a car you really like for $24,000. Sparky Salesman Ever wary, you ask about the terms. Sparky says: He offers a further sweetener: At the end of 5.5 years Sun Devil Auto will forgive the remainder of your loan balance which Sparky calculates will be $5,159.71 A. Is Sparky's deal proof that some Sun Devils are fair business people?...
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