Question

In: Finance

In order to buy a car, you borrow $19500 from a friend at 6%/year compounded monthly...

In order to buy a car, you borrow $19500 from a friend at 6%/year compounded monthly for 4 years. You plan to repay the loan with 48 equal monthly payments.

a. How much are the monthly payments?

b. How much interest in in the 23rd payment?

c. What is the remaining balance after the 37th payment?

Solutions

Expert Solution

a)

Hence, Monthly payment is $457.96

b)

Hence, Interest in 23rd payment is $55.70

c)

jeff jeffy answered 1 year ago
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