On September 1, 2017, Susan Chao bought a motorcycle for $43,000. She paid $2,000 down and financed
Question:
On September 1, 2017, Susan Chao bought a motorcycle for $43,000. She paid $2,000 down and financed the balance with a five-year loan at an APR of 5.8 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2017). Two years later, at the end of October 2019, Susan got a new job and decided to pay off the loan. If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2019?
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Since she put 2000 down the amount borrowed will be Amount borrowed 43000 2000 Amount borrow...View the full answer
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Related Book For 
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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