A year after buying her car, Anita has been offered a job in Europe.Her car loan is for $27,000 at a 6% nominal interest rate for 48 months. If she can sell the car for $20,000, how much does she get to keep after paying off the loan? 6-61 (a) You are paying off a debt at a nominal 8% per year by paying $400 at the end of each quarter for the next year. Find the interest paid in the last $400 payment. (b) If this debt were to be paid off in two equal payments of $1650 at the end of this year and next year, find the interest paid in the first $1650 payment. Again the loan rate is a nominal 8% per year compounded quarterly.
A year after buying her car, Anita has been offered a job in Europe.Her car loan is for $27,000 at a 6% nominal interest rate for 48 months. If she can sell the car for $20,000, how much does she get to keep after paying off the loan? 6-61 (a) You are paying off a debt at a nominal 8% per year by paying $400 at the end of each quarter for the next year. Find the interest paid in the last $400 payment. (b) If this debt were to be paid off in two equal payments of $1650 at the end of this year and next year, find the interest paid in the first $1650 payment. Again the loan rate is a nominal 8% per year compounded quarterly.
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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A year after buying her car, Anita has been offered a job in Europe.Her car loan is for $27,000 at a 6% nominal interest rate for 48 months. If she can sell the car for $20,000, how much does she get to keep after paying off the loan?
6-61
(a) You are paying off a debt at a nominal 8% per year by paying $400 at the end of each quarter for the next year. Find the interest paid in the last $400 payment. (b) If this debt were to be paid off in two equal payments of $1650 at the end of this year and next year, find the interest paid in the first $1650 payment. Again the loan rate is a nominal 8% per year compounded quarterly.
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