Question
On January 1, year 1, T&J borrows $60,000 to purchase a new vehicle by agreeing to a 2.5%, 6-year loan with the bank. Payments are
On January 1, year 1, T&J borrows $60,000 to purchase a new vehicle by agreeing to a 2.5%, 6-year loan with the bank. Payments are due at the end of each month with the first installment (vehicle payment) due on January 31, year 1. ROUND YOUR ANSWERS TO THE NEAREST CENT (2 decimal places). IMPORTANT!!!! when inputting the monthly interest rate DO NOT ROUND IT (use the math function in the spreadsheet/financial calculator).
20. Determine the monthly vehicle payment (installment) $_______.___
21. Determine the interest expense for the first car payment $______.___
22. How much of the payment will decrease the amount owed (principal)? $_________.___
23. After the first vehicle payment is made the amount owed on the vehicle would be: $___________.___
24. Determine interest expense for the second car payment
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