4. John is going to buy a new car costing $24,000. Wealthy Uncle Job offered a choice of three loans as described below. The annual percentage rate with monthly compounding for all three alternative loans would be 3.25% and the loans would be for 4 years. Determine the payment amount that John would have to make for each loan alternative?
Loan 1 Loan 1 would be for the total cost of the car and John would pay equal monthly payments to Uncle Job.
Loan 2 Loan 2 would be for the total cost of the car with John making a $3,000 payment at the end of the loan and equal annual payments to Uncle Job for the remainder.
Loan 3 Loan 3 would have John using $3000 of his personal savings upfront to reduce the loan size and John would make equal monthly payments to Uncle Job.
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