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A. Del bought a new car for $38,000 with a loan that will be amortized over five years. The best interest rate he got from
A. Del bought a new car for $38,000 with a loan that will be amortized over five years. The best interest rate he got from his bank for the loan was 2.0 percent compounded annually. What is Del's monthly car payment? How much interest was paid in the first car payment? How much interest will be paid over the entire life of the car loan? (6 pts) (Show your calculations) B. You have been pricing a laptop computer in several stores. Three stores have the exact same price of $1,600. Each of these stores charges 18 percent APR, has a 30-day free ride, and sends out bills on the first of the month. On further investigation, you find that Store X calculates the finance charge by using the average daily balance method, that Store Y uses the adjusted balance method, and that Store Z uses the previous balance method. Assume that you purchased the computer on May 5 and that you made a $100 payment on June 15. What will the finance charge be for June if you made your purchase from Store X? from Store Y? from Store Z? 13 pts] (Show your calculations)
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