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A car priced at $3,000 is brought on 10% down payment with the balance to be repaid by monthly instalments over 3 years at 14%

A car priced at $3,000 is brought on 10% down payment with the balance to be repaid by monthly instalments over 3 years at 14% p.a. flat.

a) Calculate the monthly installment.

b) Calculate the effective rate of interest being charged.

c)If the car is paid off just after the 12th installment has been made, find the amount needed using: i) Rule of 78 ii) Compound interest method.

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