Question
John buys a car for $45,000 by making level payments at the end of each month for six years. John is charged an annual nominal
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John buys a car for $45,000 by making level payments at the end of each month for six years. John is charged an annual nominal interest rate of 6% compounded monthly in his loan. John repays the loan exactly as scheduled (he does not make any extra or early or late payments). (please do not use a spreadsheet.)
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(e) Calculate the outstanding loan balance immediately after the 24th payment has been made using the prospective method.
- (f) Calculate the amount of interest and the amount of principal repaid in the 25-th payment.
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Financial Management Principles And Applications
Authors: Sheridan Titman
9th Edition
0655705457, 9780655705451
