Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and nanced the rest, with the agreement to
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and nanced the rest, with the agreement to pay nothing for the entire rst year and then to pay $546.83 at the end of each month over years 2, 3, and 4 (rst payment is in 13th month}. a. What nominal interest rate is Aerotron paying on the loan? 13.7644 % b. What effective interest rate are they paying? 14.6668 % Round your answer to 4 decimal places for a and b. The tolerance is :l: 0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ 54? , and principal = $ 0 d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ 507 ,and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ 145 , and principal = $ 402 Round your answers to the nearest whole dollar for c-e. The tolerance is :r: 5
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started