Question
A farmer buys a new tractor for $35,000. He makes a down payment of $10,000 and finances the balance of 8.5% APR over 48 months.
A farmer buys a new tractor for $35,000. He makes a down payment of $10,000 and finances the balance of 8.5% APR over 48 months. Before making the 12th payment, the farmer decides to pay the remaining balance on loan. How much interest will the farmer save (use the actuarial method)?
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
