Question
40. Nathan Drake is considering borrowing $10,000,000 for 25 years with a loan that has an interest rate of 18.65% p.a. The loan agreement calls
40. Nathan Drake is considering borrowing $10,000,000 for 25 years with a loan that has an interest rate of 18.65% p.a. The loan agreement calls for 25 equal annual payments, to be paid at the end of each of the next 25 years (first payment due exactly one year from today). Assuming that Nathan makes the required payment every year for the next 6 years, how much of the sixth payment will go to interest?
43. Marcus Holloway has $15,000 that he will use as a down payment on a new car. Assuming that Marcus can afford a payment of $875 per month, how much can Marcus spend on a car (that is, what is the total cost of the car that Marcus can purchase) if the interest rate is 5.5% and if he will finance his purchase with a 6-year, monthly payment loan?
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