Anna is buying $17,000 worth of rare coins as an investment. The dealer is charging her an annual interest rate of 7.5% and is using the add-on method to compute her monthly payments. a. If Anna pays off the coins in 72 months, what are her monthly payments? b. If she makes a down payment of $2,000, how much will this reduce her monthly payments? c. If she wants to have monthly payments of $275, how large should her down payment be?
Anna is buying $17,000 worth of rare coins as an investment. The dealer is charging her an annual interest rate of 7.5% and is using the add-on method to compute her monthly payments. a. If Anna pays off the coins in 72 months, what are her monthly payments? b. If she makes a down payment of $2,000, how much will this reduce her monthly payments? c. If she wants to have monthly payments of $275, how large should her down payment be?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
Anna is buying $17,000 worth of rare coins as an investment. The dealer is charging her an annual interest rate of 7.5% and is using the add-on method to compute her monthly payments.
|
a.
|
If Anna pays off the coins in
72
months, what are her monthly payments? |
|
b.
|
If she makes a down payment of
$2,000,
how much will this reduce her monthly payments? |
|
c.
|
If she wants to have monthly payments of
$275,
how large should her down payment be? |
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