. Isiah, the Managing Director of Rita's Taxis, wants to add another car to their fleet....

 

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. Isiah, the Managing Director of Rita's Taxis, wants to add another car to their fleet. He decides, therefore, to buy a second-hand Toyota Auris Hybrid car from DeMedeiros' Cars for €7500. Unfortunately, he has only €750 in free capital. To make up the difference, he decides to borrow enough money from Kheder Financing SPRL (KF) to cover also the cost of insurance (€750) and car tax (€1050). Aida, the head of Small Business Loans at KF, agrees to lend him the money at 6.5% APR over 4 years with fixed monthly payments. (a) Calculate the amount of money that Rita's Taxis will have to borrow. (b) Calculate the value of the monthly repayment that Rita's Taxis will have to make. Show and explain your working out, including any formulae that you have used (c) Draw up the payment table for the first four months of loan repayments. The table must include the payment number (starting at 1), the monthly repayment (in euros to the nearest eurocent), the amount of interest charged in that month, the capital repaid in that month and the remaining balance on the loan at the end of the month. . Isiah, the Managing Director of Rita's Taxis, wants to add another car to their fleet. He decides, therefore, to buy a second-hand Toyota Auris Hybrid car from DeMedeiros' Cars for €7500. Unfortunately, he has only €750 in free capital. To make up the difference, he decides to borrow enough money from Kheder Financing SPRL (KF) to cover also the cost of insurance (€750) and car tax (€1050). Aida, the head of Small Business Loans at KF, agrees to lend him the money at 6.5% APR over 4 years with fixed monthly payments. (a) Calculate the amount of money that Rita's Taxis will have to borrow. (b) Calculate the value of the monthly repayment that Rita's Taxis will have to make. Show and explain your working out, including any formulae that you have used (c) Draw up the payment table for the first four months of loan repayments. The table must include the payment number (starting at 1), the monthly repayment (in euros to the nearest eurocent), the amount of interest charged in that month, the capital repaid in that month and the remaining balance on the loan at the end of the month.

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a The amount to be borrowed by Ritas Taxis Explanation Amount to be bor... View the full answer