On September 1, 2017, Susan Chao bought a motorcycle for $43,000. She paid $2,000 down and financed

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On September 1, 2017, Susan Chao bought a motorcycle for $43,000. She paid $2,000 down and financed the balance with a five-year loan at an APR of 5.8 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2017). Two years later, at the end of October 2019, Susan got a new job and decided to pay off the loan. If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2019?

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Corporate Finance Core Principles And Applications

ISBN: 9781260571127

6th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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