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Compute the amount of monthly payment that must be made to pay off the loan and interest. Example of Answer: 546.96 or 546.90 or 546.00 Two decimal points. No comma, space or $ sign.

Compute the amount of monthly payment that must be made to pay off the loan and interest. Example of Answer: 546.96 or 546.90 or 546.00 Two decimal points. No comma, space or $ sign.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dineshbhai 

Determining Periodic Payment Amount to Settle a Loan (principal and interest): Kam Company needs to buy a new truck. The price of the truck is $48,000. A dealer has agreed to the following terms: $3,000 down plus 36 equal monthly payments at the end of each month. The local rate available for borrowing is 6.5% a year. Compute the amount of monthly payment that must be made to pay off the loan and interest. Example of Answer: 546.96 or 546.90 or 546.00 Two decimal points. No comma, space or $ sign.
Transcribed Image Text:Determining Periodic Payment Amount to Settle a Loan (principal and interest): Kam Company needs to buy a new truck. The price of the truck is $48,000. A dealer has agreed to the following terms: $3,000 down plus 36 equal monthly payments at the end of each month. The local rate available for borrowing is 6.5% a year. Compute the amount of monthly payment that must be made to pay off the loan and interest. Example of Answer: 546.96 or 546.90 or 546.00 Two decimal points. No comma, space or $ sign.
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