Question: Refer to Plan 2 in Table 4-1. This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours

Refer to Plan 2 in Table 4-1. This is the customary way to pay off loans on automobiles, house mortgages, etc. A friend of yours has financed $24,000 on the purchase of a new automobile, and the annual interest rate is 12% (1% per month).
a. Monthly payments over a 60-month loan period will be how much?
b. How much interest and principal will be paid in the third month of this loan?

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a The monthly payment is 24000 AP 1 60 24000 00222 53280 b ... View full answer

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