You have just purchased a car and taken out a $50,000 loan. The loan has a five-year

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You have just purchased a car and taken out a $50,000 loan. The loan has a five-year term with monthly payments and an APR of 6%.

a. How much will you pay in interest, and how much will you pay in principal, during the first month, second month, and first year?

b. How much will you pay in interest, and how much will you pay in principal, during the fourth year (i.e., between three and four years from now)?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:23 AM

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You have just purchased a car and taken out a $50,000 loan. The loan has a five-year

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a Initial loan balance 50000 APR 6 length of loan mo...View the full answer

Fundamentals of Corporate Finance

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