Travis bought a new Corvette Z06 for $100,000. He got a 60 month loan for $71000...

Travis bought a new Corvette Z06 for $100,000. He got a 60 month loan for $71000 at a nominal rate of 5.375% per year compounded monthly, with uniform monthly payments starting one month from the date of purchase.

a) What were his monthly car payments?
b) After 24 months how much would he still owe?

He sold the car at the end of 36 months for $60,000.

c) What was the payoff? (remember to add the last payment)

d) How much of his thirteenth payment was interest?

e) How much of his thirteenth payment was equity?

Expert Solution

1, Scheduled Payment would be $1352.09.

2. After 24 MOnths still he owes $ 44860.98

3. $29000 Down payment + $30,701.74 Amount due after 36 months

4. HIs thirteenth payement of Interest is $261.05

5. Equity is $1091.04.

ekkarill92 answered 1 year ago

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