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You are looking to purchase a new car with the assistance of a $22,000, five-year loan at an APR of 5.4%, compounded monthly. Required: a.

You are looking to purchase a new car with the assistance of a $22,000, five-year loan at an APR of 5.4%, compounded monthly.

Required:

a. What is the monthly payment on this loan?

b. What is the amount of interest and principal on the loan’s first monthly payment?

c. What is the amount of interest and principal on the loan’s sixteenth monthly payment?

d. Show a second method to determine the amount of interest and principal on the loan’s sixteenth monthly payment.

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a Monthly payment PR1RT1RT1 where P loan amount 22000 R monthly interest 5412 045 T Loan period 5 years or 60 months 5 years 12 months a year 22000045... blur-text-image

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