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Bobby Bragg has decided to buy a 10-year old car from Banger Motors for $6 000. Rockwelle Finance has offered Bobby a 4-year loan at
Bobby Bragg has decided to buy a 10-year old car from Banger Motors for $6 000. Rockwelle Finance has offered Bobby a 4-year loan at an annual interest rate of 15% p.a. with annual payments at the end of each year. Required: (1) What is Bobby's annual loan repayment amount? (2) What is the principal component of the year 2 loan repayment? (3) What is the interest component of the year 3 loan repayment? (4) What is the opening balance of the loan the commencement of year 4? (1) $2 101.59, (2) $4 798.41, (3) $900.00 (4) $274.12 (1) $2 101.59, (2) $1 381.83, (3) $512.49 (4) $1 827.48 O (1) $2 101.59, (2) $1 201.59, (3) $ 2 101.59 (4) $1 827.48 (1) $2 101.59, (2) $1 201.59, (3) $1 201.59 (4) $4 798.41 O (1) $2 101.59, (2) $3 416.58, (3) $719.76 (4) $2 101.59
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