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Elin's monthly car payment?

Elin's monthly car payment?

Essentials Of Investments
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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 Write the solution including the CASH FLOW DIAGRAM

Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and financed the $12,000 balance payable in 4 years but in monthly installments. The interest rate is 99% compounded monthly, and the loan will be repaid in equal monthly instalments for first two years and double it on the next two years. What is Elin's monthly car payment? A $205.20 B) $274.11 $576.3 $372.12
Transcribed Image Text:Elin purchased a used car for $15,000. She wrote a check for $3000 as a down payment for the car and financed the $12,000 balance payable in 4 years but in monthly installments. The interest rate is 99% compounded monthly, and the loan will be repaid in equal monthly instalments for first two years and double it on the next two years. What is Elin's monthly car payment? A $205.20 B) $274.11 $576.3 $372.12
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