1. You currently owe $18,000 on a car loan at 8.0% interest. If you make monthly...
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1. You currently owe $18,000 on a car loan at 8.0% interest. If you make monthly payments of $576.49 per month, how long will it take you to repay the loan? Please state the time in months. 2. You have received a bond that will pay $500 at the end of each year forever into the future. If the market yield on the bond is 8.25%, how much it is worth today? 3. What is the future equivalent of $1000 invested at 8% simple interest for 3 years? 4. What are the two basic ways to compute interest? Does it matter which one you use and why? 1. You currently owe $18,000 on a car loan at 8.0% interest. If you make monthly payments of $576.49 per month, how long will it take you to repay the loan? Please state the time in months. 2. You have received a bond that will pay $500 at the end of each year forever into the future. If the market yield on the bond is 8.25%, how much it is worth today? 3. What is the future equivalent of $1000 invested at 8% simple interest for 3 years? 4. What are the two basic ways to compute interest? Does it matter which one you use and why?
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1 To calculate how long it will take to repay the car loan we can use the formula for the monthly pa... View the full answer
Related Book For
Applied Calculus
ISBN: 9781119275565
6th Edition
Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum,
Posted Date:
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