Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal monthly payments for five years. Interest is 9% compounded monthly. Complete parts (a) though (f). (a) What is the size of the monthly payments? The size of a monthly payment is $ 166.07. (Do not round until the final answer. Then round to the nearest cent as needed.) (b) How much will the loan cost him? The cost of the loan is $ 1964.20. (Round to the nearest cent as needed.) (c) How much will Angelo owe after eighteen months? The amount owed after eighteen months is $. (Round to the nearest cent as needed.)
Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal monthly payments for five years. Interest is 9% compounded monthly. Complete parts (a) though (f). (a) What is the size of the monthly payments? The size of a monthly payment is $ 166.07. (Do not round until the final answer. Then round to the nearest cent as needed.) (b) How much will the loan cost him? The cost of the loan is $ 1964.20. (Round to the nearest cent as needed.) (c) How much will Angelo owe after eighteen months? The amount owed after eighteen months is $. (Round to the nearest cent as needed.)
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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Answer b is 9964.20, not 1964.20.
Transcribed Image Text:Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal monthly payments for five years. Interest is 9% compounded monthly. Complete parts (a)
though (f).
(a) What is the size of the monthly payments?
The size of a monthly payment is $ 166.07.
(Do not round until the final answer. Then round to the nearest cent as needed.)
(b) How much will the loan cost him?
The cost of the loan is $ 1964.20.
(Round to the nearest cent as needed.)
(c) How much will Angelo owe after eighteen months?
The amount owed after eighteen months is $
(Round to the nearest cent as needed.)
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