Suppose you take out a car loan of $10,000 with an interest rate of 12% compounded monthly.
Question:
Suppose you take out a car loan of $10,000 with an interest rate of 12% compounded monthly. You will pay off the loan over 48 months with equal monthly payments.
(a) What is the monthly interest rate?
(b) What is the amount of the equal monthly payment?
(c) What is the interest payment for the 20th payment?
(d) What is the total interest paid over the life of the loan?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a b 10000AP 1 48 1000000263 263month c Remaining balance ...View the full answer
Answered By
Sandhya Sharma
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
119+ Reviews
214+ Question Solved
Related Book For 
Question Posted:
