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How much do you still owe on your auto loan if you have 47 remaining monthly payments of $543 with annual interest of 6.9 percent assuming monthly compounding?

How much do you still owe on your auto loan if you have 47 remaining monthly payments of $543 with annual interest of 6.9 percent assuming monthly compounding?

Answer to the nearest dollar amount, and enter without the dollar sign.

Solutions

Expert Solution

Present Value Of An Annuity
= C*[1-(1+i)^-n]/i]
Where,
C= Cash Flow per period
i = interest rate per period
n=number of period
= $543[ 1-(1+0.00575)^-47 /0.00575]
= $543[ 1-(1.00575)^-47 /0.00575]
= $543[ (0.2362) ] /0.00575
= $22,307

jeff jeffy answered 3 years ago
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