Question
You are looking to purchase a Tesla Model S luxury sedan. The price is 77,530. However, you negotiate a six-year loan, with no money down
You are looking to purchase a Tesla Model S luxury sedan. The price is 77,530.
However, you negotiate a six-year loan, with no money down and no monthly
payments. After the first year you will pay 1,250 per month for the following 5 years
with a balloon payment at the end to cover the remaining principal on the loan. The
APR on the loan with monthly compounding is 5%. What will be the amount of the
balloon payment six years from now?
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
