Tan Company purchased a large server for $16,000. The company paid 45.00% of the value as a down-payment and received a loan for the balance at 4.50% compounded monthly. The loan has a term of 6 years and Tan Company has to make month-end payments to settle the loan.

a. What is the size of the month-end payments?

Round to the nearest cent

b. What was the total amount paid to settle the loan?

Round to the nearest cent

c. Calculate the total amount of interest paid throughout the term of the loan.

Answer rating: 100% (QA)

To calculate the size of the monthend payments we first need to determine the loan amount and then use the formula for calculating monthly payments on ... View the full answer