=1 - 6: Foxtrot Corporatic new Ford Transit delivery

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 6
For questions 1 - 6: Foxtrot Corporation is
purchasing a new Ford Transit delivery van for
$24,600. Its lender requires a maximum loan
to value ratio of 80% on the purchase price of
the vehicle. The term of the loan is 5 years.
The interest rate is 5% APR. The loan is a
closed end credit loan. There is no trade-in.
Sales tax is 7%. Documentation fee is $275.
6. How much of the first monthly payment
will be interest and how much of the last
monthly payment will be interest?
$82.00 and $1.54
$75.22 and $7.04
O $43.39 and $43.39
$87.99 and $0.00
Transcribed Image Text:Question 6 For questions 1 - 6: Foxtrot Corporation is purchasing a new Ford Transit delivery van for $24,600. Its lender requires a maximum loan to value ratio of 80% on the purchase price of the vehicle. The term of the loan is 5 years. The interest rate is 5% APR. The loan is a closed end credit loan. There is no trade-in. Sales tax is 7%. Documentation fee is $275. 6. How much of the first monthly payment will be interest and how much of the last monthly payment will be interest? $82.00 and $1.54 $75.22 and $7.04 O $43.39 and $43.39 $87.99 and $0.00
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