question 4-38

ed for the lite ol otal interest will by Ed Wheeler. (b) During the summer, Frank made enough money to pay off the entire balance due on the car as of October 1. How much did Frank owe on October 1? 0 and made an d a 30-year loan ents were made est rate was 6%. old the house and ement? n addition to his mit) to pay off the 4-38 An engineering student bought a car at a local used car lot. Including tax and insurance, the total price was $15,000. He is to pay for the car in 13 equal monthly payments, beginning with the first pay. ment immediately (the first payment is the down payment). Nominal interest on the loan is 12%, com- pounded monthly. After six payments he decides to sell the car. A buyer agrees to pay off the loan in full and to pay the engineering student $2000. If there are no penalty charges for this early payment of the loan, how much will the car cost the new buyer? 4-39 Liam dreams of starting his own business to import consumer electronic products to his home country. He estimates he can earn 5% on his investments and that he will need to have $300,000 at the end of year 10 if he wants to give his business a good solid foundation. He now has $28,850 in his account, and he believes he can save $12,000 each year from B is the present 0