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Sean is shopping around for his dream car. He is tired of driving around his 1985 Yugo and wants to buy a 2008 Land Rover
Sean is shopping around for his dream car. He is tired of driving around his 1985 Yugo and wants to buy a 2008 Land Rover SUV. The cost of this new SUV is $50,000. Sean expects to finance the entire cost of the vehicle by taking out a loan from a local credit union. He gets a loan with an annual interest rate of 9%. He will be required to make annual payments at the end of every year for three years. Find what Sean's annual payments will be. (hint: use the PV of annuity formula). After you have calculated his annual payment, construct a loan amortization schedule for Sean so that he knows what the principal and interest payments look like
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