Proxima N.7 11 ILIIII I3 I| .4E) Calculating loans14. Louis is looking at buying a car for $20,000. The term for the loan is 6 years,and the interest rate is 3%, compounded monthly. He decides to put $.number less than 10,000) down. How much will his monthly payments be?2500 (a-txn1-(1+Loan= paymentNC

Car value = $ 20000 Down payment = $ 2500 Loan amount (PV) = 20000-2500 = 17500 Annual interest rate…

Answered: 14. Louis is looking at buying a car…

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

Section: Chapter Questions

Problem 1PS

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Similar questions

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4. Use the present value of an annuity formula to find the maximum car loan that you can afford if you can afford to pay $250 per month, the interest rate is 3%, and you want to have it paid off in 4 years? Assume monthly payments. Write out the formula first to show your work.
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14. Louis is looking at buying a car for $20,000. The term for the loan is 6 years, and the interest rate is 3%, compounded monthly. He decides to put $_2500__ (a number less than 10,000) down. How much will his monthly payments be?