Question: I signed a contract that calls for a down payment of $2600 and for the payment of $200 a month for 10 years. The interest

I signed a contract that calls for a down payment of $2600 and for the payment of $200 a month for 10 years. The interest rate is 12% compounded monthly.

a) What is the cash value of the contract?

b) If I missed the first 8 payments, what must I pay at the time the ninth payment is due to bring myself up to date?

c) If I missed the first 8 payments, what must I pay at the time of the ninth payment is due to discharge my indebtedness completely?

d) If, at the beginning of the fifth year (just after the 48th payment is made), the contract is sold to a buyer at a price that will yield 15% compounded monthly, what does the buyer pay?

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