An installment contract for the purchase of a car requires payments of $217.43 at the end of each month for 6 years. Interest is 6% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost?
An installment contract for the purchase of a car requires payments of $217.43 at the end of each month for 6 years. Interest is 6% per annum compounded monthly. (a) What is the amount financed? (b) How much is the interest cost?
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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Question
An installment contract for the purchase of a car requires payments of
$217.43
at the end of
each
month
for
6
years. Interest is
6%
per annum compounded monthly.(a) What is the amount financed?
(b) How much is the interest cost?
Question content area bottom
Part 1
(a) The amount financed is
$enter your response here.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Part 2
(b) The interest is
$enter your response here.
(Round the final answer to the nearest cent as needed.
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