Question
Charles Goldman from Sacramento, California, borrows $4,500 (including interest) for two years (24 months) at an interest rate of 11% per year. The loan uses
Charles Goldman from Sacramento, California, borrows $4,500 (including interest) for two years (24 months) at an interest rate of 11% per year. The loan uses the discount method for determining the amount of interest.
How much of the loan amount ($4,500) consists of interest?
How much of the loan is actually given directly to Charles?
What is the monthly payment (rounded to the nearest penny), assuming 24 monthly payments?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
5th edition
1111527369, 978-1111527365
