Question
After visiting several automobile dealerships, Richard selects the used car he wants for a price of $14,600. He has $2,500 cash for a down payment,
After visiting several automobile dealerships, Richard selects the used car he wants for a price of $14,600. He has $2,500 cash for a down payment, so he needs a $12,100 loan. Richard borrows $12,100 for a period of four years at an add-on interest rate of 9 percent. What is the total interest on Richards loan? What is the monthly payment? What is the annual percentage rate (APR)?
| Total interest on loan: 4,192. Monthly payment: $360. APR: 15.67%. | ||
| Total interest on loan: 3,872. Monthly payment: $333. APR: 15.67%. | ||
| Total interest on loan: 4,716. Monthly payment: $371. APR: 17.63%. | ||
| Total interest on loan: 4,356. Monthly payment: $343. APR: 17.63%. |
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Financial Times Guide To The Financial Markets
Authors: Glen Arnold
1st Edition
0273730002, 978-0273730002
