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Our friend has just taken out a $12,000 loan to buy a new car. The loan is for 7 years and carries a 4.5% annual
Our friend has just taken out a $12,000 loan to buy a new car. The loan is for 7 years and carries a 4.5% annual interest rate. Payments on this loan must be made at the end of every month.
-How much will each of your monthly payments be?
-How much of your first monthly payment is going towards interest? How much is going to pay down the principle on the loan?
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