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Freddie decides to buy the fleet of vehicles after all, for a price of $335,000. Freddie's friend Kiki, who is an executive at Mercury
Freddie decides to buy the fleet of vehicles after all, for a price of $335,000. Freddie's friend Kiki, who is an executive at "Mercury Bank", has arranged a special interest rate of 2.4% p.a. compounding monthly for Freddie to take out a loan for this purchase. Freddie is considering taking this special offer, and intends to fully repay the loan using level monthly repayments over the coming 8 years. The first payment is exactly one month from today. (a) Calculate the size of the level monthly repayment. Give your answer in dollars, to the nearest cent. (1 mark) Answer: (b) What is Freddie's loan outstanding after 1 year? Give your answer in dollars, to the nearest cent. (1 mark) Answer:
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Financial and Managerial Accounting Information for Decisions
Authors: John Wild, Ken Shaw, Barbara Chiappetta
5th edition
978-1259317552, 1259317552, 978-0078025600, 78025605, 978-1259335013, 1259335011, 978-1259347641
