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A $28,000.00 car loan is to be repaid by end-of-month payments of $480.00 (except the smaller concluding payment).The interest paid for the loan is 5.78
A $28,000.00 car loan is to be repaid by end-of-month payments of $480.00 (except the smaller concluding payment).The interest paid for the loan is 5.78 % compounded quarterly.
a) Calculate the amortization term of the car loan.
b) How much interest will be paid in the second year?
c) How much will the principal be reduced in the second year?
d) Calculate the balance after two years.
e) What will be the final payment?
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