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You want to purchase a car and you found a low mileage car in good condition selling at $20,000. The best

financing you can get is from a company that charges an interest rate of 6% compounded monthly for a 48-month period. a) What will be the size of your monthly payments? b) What is the balance of your loan immediately after your 24th payment? c) What portion of the 14 th payment is interest? d) What portion of the 14th payment is equity payment?

Top Answer

Annual rate =6% Monthly =0.5% period =48 Present value interest factor of monthly PVIFA=1-(1+R) -N /R R=0.5%=0.005 N=48... View the full answer

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