Question
Tame Impala recently borrowed $27,000 to purchase a new car. The loan fully amortizes over 60 months. In other words, the loan has 60 fixed,
Tame Impala recently borrowed $27,000 to purchase a new car. The loan fully amortizes over 60 months. In other words, the loan has 60 fixed, endofmonth payments and the balance on the loan will be zero after the final monthly payment is made. The loan has an APR of 6%. Tame believes it is likely that he will decide to pay off the loan early, instantaneously after making the 34th monthly payment. What will be the loan payoff at that time?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
