Barry has bought a new car and needs a loan of 12,000 to pay for it. The

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Barry has bought a new car and needs a loan of 12,000 to pay for it. The car dealer offers Barry two loan alternatives:

a) Monthly payments for 3 years, beginning one month after purchase with an annual interest rate of 12% compounded monthly, or

b) Monthly payments for 4 years, also starting one month after the purchase, with an annual interest rate of 15%, compounded monthly.

Find Barry's monthly payment and the total amount paid over the course of the payment period in each of the two options.

Related Book For answer-question

Personal Finance

ISBN: 978-0132994347

5th edition

Authors: Jeff Madura

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Posted Date: Apr 07, 2023 03:47 AM

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Barry has bought a new car and needs a loan of 12,000 to pay for it. The

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For option a The loan amount is 12000 The annual interest rate is 12 compounded monthly The loan ter... View the full answer

Personal Finance

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