Alset Motors is offering the 2019 Tesla Model S Sedan (basic model) for $79,900. You “wheel...

Alset Motors is offering the 2019 Tesla Model S Sedan (basic model) for $79,900. You “wheel and deal” and get the price down to $75,000 with no money down (100%-financing). The only difficulty is that the monthly payments on the 7.2%, six-year loan are at the beginning of the month.
1. What is the monthly payment on this loan?
2. How much of the first payment is interest and how much is principal? (label them)
3. How much of the sixteenth payment is interest and how much is principal? (label them)
4. How much interest and how much principal would you pay in the loan’s second full year? (label them)
5. How much interest and how much principal would you pay over the life of the loan? (label them)

Expert Solution

jeff jeffy answered 3 months ago

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