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# John is going to buy a new car costing \$24,000. Wealthy Uncle Job offered a choice of three loans as described below.

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.

Dear student! PFA, in case... View the full answer

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...

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