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Suppose you are getting a new car with your parents help. The car you want to buy costs $25,000 and you and your parents together
Suppose you are getting a new car with your parents help. The car you want to buy costs $25,000 and you and your parents together put up $12,500 and the rest is loan from the local bank at 5.2% for four years. You will make payments monthly starting next month. What is the ending balance ($) of your loan after you make the third monthly payment? (Note that this is the ending balance of year 3 of your amortization schedule!) What is the total amount of interest you are going to pay during the life of the loan?
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