Question
You take out a 5-year installment loan to purchase a new vehicle. Your monthly payment is fixed at $485.22 for those 5 years, after which
You take out a 5-year installment loan to purchase a new vehicle. Your monthly payment is fixed at $485.22 for those 5 years, after which you will have paid off the loan in full. Will a larger proportion of your payment go towards principal during year 1 of the loan, or year 4 of the loan?
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Monetary Policy Strategy
Authors: Frederic S. Mishkin
1st Edition
0262513374, 978-0262513371
