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You want to buy a car that costs $ 2 0 , 0 0 0 and are offered the following terms. Loan A: the interest
You want to buy a car that costs $ and are offered the following terms.
Loan A: the interest rate is an annual with interest added monthly and you will need to pay the loan back in five years.
a How much is your monthly payment?
b How much in total will you pay over the life of the loan? Hint: multiply the monthly payments by the number of months.
a Is it a single sum or an annuity.
b Write here what you are looking for
c Fill in the following.
Your answer:
After you are told your monthly payment on Loan A above you think the monthly payment is too high and ask if the dealer can cut you a better deal. He offers Loan B Under Loan B your interest rate will be an annual rate of with interest added monthly but you have seven years to pay.
a How much is your monthly payment?
b How much in total will you pay over the life of the loan? Hint: multiply the monthly payments by the number of months.
What is the difference between the total amount you pay for Loan A versus the total amount you pay for Loan B
You see a condo that you would like to buy in Kapolei. The price is and your bank says they will give you a year mortgage at annual interest with interest added monthly. What would your monthly payment be
a Is it a single sum or an annuity.
b Write here what you are looking for
c Fill in the following.
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