SE THE INFORMATION BELOW TO ANSWER THE FOLLOWING THREE QUESTIONS

Alex Mason just bought his dream car, 2017 Ferrari California T that cost $216,470. He paid $35,000 down and financed the balance over 84 months at 5.25% p.a. (Assume that Alex makes all required payments on time).

28. What is the monthly payment on Alex's loan?

29. What will the balance on Alex's loan be at the end of the fourth year (that is, immediately after Alex makes his 48th payment on the loan)?

30. What is the total amount of interest that Alex will pay over the entire term of the loan (that is, the total amount of interest that is paid on payments 1 through 84)?

SIMILAR QUESTION + ANSWER

Vito Scaletta just bought his dream car, 2014 Aston Martin DB9 that cost $208,700. He paid $35,000 down and financed the balance over 84 months at 6.25% p.a. (Assume that Vito makes all required payments on time).

28. What is the monthly payment on Vito's loan?

PV = amount borrowed = 173700; N = 84; I = 6.25/12=; CPT PMT =$2,558.38

29. What will the balance on Vito's loan be at the end of the fourth year (that is, immediately after Vito makes his 48^thpayment on the loan)?

PMT = 2558.3751; I = 6.25/12=; N = (84 - 48) = 36; CPT PV = payoff =$83,784.07

30. What is the total amount of interest that Vito will pay over the entire term of the loan (that is, the total amount of interest that is paid on payments 1 through 84)?

Total amount paid for car (over all 84 months) = (2588.3751)(84) = 214,903.51. Total amount borrowed = 208,700. Thus, interest paid = 214,903.51 - 173,700 =$41,203.51