Turner buys a new car and finances it with a loan of 12,000. He will make...

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Turner buys a new car and finances it with a loan of 12,000. He will make n monthly payments of 440 starting in one month. He will make one larger payment in n + 1 months to pay off the loan. Payments are calculated using an annual nominal interest rate of 4.8%, convertible monthly. Immediately after the 14th payment he refinances the loan to pay off the remaining balance with 7 monthly payments starting one month later. This refinanced loan uses an annual nominal interest rate of 7.2%, convertible monthly. Calculate the amount of the new monthly payment. Turner buys a new car and finances it with a loan of 12,000. He will make n monthly payments of 440 starting in one month. He will make one larger payment in n + 1 months to pay off the loan. Payments are calculated using an annual nominal interest rate of 4.8%, convertible monthly. Immediately after the 14th payment he refinances the loan to pay off the remaining balance with 7 monthly payments starting one month later. This refinanced loan uses an annual nominal interest rate of 7.2%, convertible monthly. Calculate the amount of the new monthly payment.

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The detailed answer for the above question is provided below The new monthly payment would be 61... View the full answer