Question
In: Finance
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the...
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $97,750. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,725 per month for the following five 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 6.2 percent. What will be the amount of the balloon payment six years from now?
Solutions
Expert Solution
Rate of interest = 6.2% APR compounded monthly
Effective Annual rate (EAR) = (1+ 6.2%/12)^ 12 -1 = 6.37%
Formulae
jeff jeffy answered 2 years agoRelated Solutions
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