Bank Compound Rate JD Smith 5% APR no down payment Monthly (84 months) Royal Bank 4.4% APR with down payment or 4.5% APR no down payment Monthly (84 months) Gillie & Co 6.25% Monthly (72 months) Given that adam decides to borrow from Royal Bank, answer the following questions: 2. Adam decides to borrow $40,000 that is needed to buy the car, given that he has to make 24 equal monthly payments at R% interest monthly on the unpaid balance. a) How much of each monthly payment goes towards interest and how much is used to lessen the balance that is unpaid? Create an amortization schedule showing this information and discuss the benefits of it.
Bank Compound Rate JD Smith 5% APR no down payment Monthly (84 months) Royal Bank 4.4% APR with down payment or 4.5% APR no down payment Monthly (84 months) Gillie & Co 6.25% Monthly (72 months) Given that adam decides to borrow from Royal Bank, answer the following questions: 2. Adam decides to borrow $40,000 that is needed to buy the car, given that he has to make 24 equal monthly payments at R% interest monthly on the unpaid balance. a) How much of each monthly payment goes towards interest and how much is used to lessen the balance that is unpaid? Create an amortization schedule showing this information and discuss the benefits of it.
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
Related questions
Question
| Bank | Compound | Rate |
| JD Smith | 5% APR no down payment | Monthly (84 months) |
| Royal Bank | 4.4% APR with down payment or 4.5% APR no down payment | Monthly (84 months) |
| Gillie & Co | 6.25% | Monthly (72 months) |
Given that adam decides to borrow from Royal Bank, answer the following questions:
2. Adam decides to borrow $40,000 that is needed to buy the car, given that he has to make 24 equal monthly payments at R% interest monthly on the unpaid balance.
a) How much of each monthly payment goes towards interest and how much is used to lessen the balance that is unpaid? Create an amortization schedule showing this information and discuss the benefits of it.
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