After making a down payment of $6000 for an automobile, Molly paid $600 per month for 36 months with interest charged at 6% per year compounded monthly on the unpaid balance. 1. How much did Molly pay towards the principal of the loan on the car? (1. Write the formula, fill in the formula, do not solve. 2. Use TVM solver to solve)

After making a down payment of $6000 for an automobile, Molly paid $600 per month for 36 months with interest charged at 6% per year compounded monthly on the unpaid balance. 1. How much did Molly pay towards the principal of the loan on the car? (1. Write the formula, fill in the formula, do not solve. 2. Use TVM solver to solve)

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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Kevin are determined to buy new car and he can afford to pay Rs. 120,000 per annum for 5 years towards a new Car. Kevin call a finance company and learn that the going rate of interest is 1 per cent month. Kevin required to: a) Calculate the amount that can be borrowed by you now towards purchase of a new car. b) Prepare amortisation schedule for the car loan c) Calculate total amount and total interest paid by you to the finance company towards car loan borrowed ?
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A 148.
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