A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5 years. She decides to pay an extra $15 per payment. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) How much does she decide to pay each month? (Round your answer to the nearest cent.) $ (b) How many payments (that include the extra $15) will she make? (Round your answer up to the next whole number.) payments (c) How much will she save by paying the extra $15? (Round your answer to the nearest cent.)
A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5 years. She decides to pay an extra $15 per payment. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) How much does she decide to pay each month? (Round your answer to the nearest cent.) $ (b) How many payments (that include the extra $15) will she make? (Round your answer up to the next whole number.) payments (c) How much will she save by paying the extra $15? (Round your answer to the nearest cent.)
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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Transcribed Image Text:A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5 years. She decides to pay an extra
$15 per payment.
(a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.)
2$
How much does she decide to pay each month? (Round your answer to the nearest cent.)
24
(b) How many payments (that include the extra $15) will she make? (Round your answer up to the next whole number.)
payments
(c) How much will she save by paying the extra $15? (Round your answer to the nearest cent.)
2$
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