A friend of yours is interested in purchasing a motor vehicle with at a cost of $3.5 million. The bank has indicated that they are willing to finance 80% of the purchase price at a rate of 12% p.a. over 4 ½ years with equal monthly repayments.  Your friend has asked you to   Compute the required monthly payments. (round to the nearest dollar)               Prepare the Loan amortization schedule for the first 4 months (round to the nearest dollar).                                                                                                                              Determine how much would be required to close the loan after 2 ½ years.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  1. A friend of yours is interested in purchasing a motor vehicle with at a cost of $3.5 million. The bank has indicated that they are willing to finance 80% of the purchase price at a rate of 12% p.a. over 4 ½ years with equal monthly repayments.  Your friend has asked you to

 

  1. Compute the required monthly payments. (round to the nearest dollar)              
  2. Prepare the Loan amortization schedule for the first 4 months (round to the nearest dollar).                                                                                                                             
  3. Determine how much would be required to close the loan after 2 ½ years.         
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