3. A sports car enthusiast necds to finance $25,000 of the total purchase price of a newcar. A loan is selected having 48 monthly level payments with a lender charging 6%convertible monthly. However, the lender informs the buyer that their policy is not tocxceed a $500 monthly payment on any car loan. The buyer decides to accept the loanoffer with the $500 payment and then decides to take out a second 12-month loanwith a different lender at 7.5% convertible monthly to make up the shortfall nocovered by the first loan. Find the amount of the monthly payment on the secondloan.

Answer rating: 100% (QA)

For the first loan the monthly payment of 500 is an annuity and ... View the full answer