Question
Kimiko signed a loan agreement requiring payments of $234.60 at the end of every month for six years at 7.2% compounded monthly. (a) How much
Kimiko signed a loan agreement requiring payments of $234.60 at the end of every month for six years at 7.2% compounded monthly.
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(a) How much was the original loan balance?
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(b) If Kimiko missed the first five payments, how much would she have to pay after six months to bring the payments up to date?
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(c) How much would Kimiko have to pay after six months to pay off the loan (assuming she missed all the payments and there was no late payment penalty)?
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(d) If the loan were paid off after six months, what would the total interest cost be?
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(e) How much of the total interest cost is additional interest because of the missed payments
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