How much would your monthly payment be on a 3-year loan if the following assumptions were...
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How much would your monthly payment be on a 3-year loan if the following assumptions were true? • You borrowed $8,000. • The fixed APR on the loan is 6.3%. Note: A fixed APR is an annual interest rate that does not change during the 3-year period. • You will make equal monthly payments to repay both the loan amount and the monthly interest charges. • You want to completely pay off the loan in exactly 3 years. What is the total amount that you would pay to the bank over this 3-year period? How much total interest would you have paid to the bank? How much would your monthly payment be on a 3-year loan if the following assumptions were true? • You borrowed $8,000. • The fixed APR on the loan is 6.3%. Note: A fixed APR is an annual interest rate that does not change during the 3-year period. • You will make equal monthly payments to repay both the loan amount and the monthly interest charges. • You want to completely pay off the loan in exactly 3 years. What is the total amount that you would pay to the bank over this 3-year period? How much total interest would you have paid to the bank?
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To calculate the monthly payment on a loan you can use the formula for the amortization of a loan Th... View the full answer
Related Book For
Contemporary Business Mathematics With Canadian Applications
ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
Posted Date:
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