Question
An auto repair shop borrowed $18 ,000 to be repaid by monthly payments over 6 years. Interest on the loan is 9 % compounded monthly
An auto repair shop borrowed
$18 ,000
to be repaid by
monthly
payments over
6
years. Interest on the loan is
9 %
compounded monthly
.(a) What is the size of the periodic payment?(b) What is the outstanding principal after payment
18?
(c) What is the interest paid on payment
19?
(d) How much principal is repaid in payment
19?
Step by Step Solution
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Step: 1
To solve this problem we can use the formula for calculating the monthly payment on a loan with comp...
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
