Consider the loan from the previous question: a 60-month, $20,000 car loan with a 6% APR, compounded
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Consider the loan from the previous question: a 60-month, $20,000 car loan with a 6% APR, compounded monthly. Assume that right after you make your 50th payment, the balance on the loan is $3,762.32. How much of your next payment goes toward principal and how much goes toward interest? Compare this with your answer in the last question—what is happening?
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Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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