Mary Smith took a car loan of $12,000 to pay back in 60 monthly installments at an interest rate of 12% compounded monthly on the understanding that the interest rate may be changed sometime in the future. Compute
(a) the monthly payment for Mary.
(b) the loan balance immediately after the 24th payment.
(c) the monthly payment for the remainder of the loan if the interest rate is reduced to 9% compounded monthly.

Answer rating: 100% (QA)

Initial loan amount 12000 Total payments 60 monthly installments Rate 12 compounde... View the full answer