Imagine you are purchasing a late model vehicle for $15,000. You have saved $3,000 cash to...

 

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Imagine you are purchasing a late model vehicle for $15,000. You have saved $3,000 cash to purchase the vehicle. You have no trade-in vehicle. Sales tax of 7% will have to paid on the purchase price of the vehicle. The term of your vehicle loan is 5 years (60 months). The loan is a closed end credit loan. Payments are made monthly. The interest rate is 8.5%. How much of the 30th monthly payment will be interest? Imagine you are purchasing a late model vehicle for $15,000. You have saved $3,000 cash to purchase the vehicle. You have no trade-in vehicle. Sales tax of 7% will have to paid on the purchase price of the vehicle. The term of your vehicle loan is 5 years (60 months). The loan is a closed end credit loan. Payments are made monthly. The interest rate is 8.5%. How much of the 30th monthly payment will be interest?

Answer rating: 100% (QA)

1 Loan Amount Calculation Purchase price of the vehicle 15000 Down payment 3000 Loan amount Purchase ... View the full answer