Heather has $13,000 to put down on a new car priced at $25,000. The bank offers an annual interest rate of 5.5% compounded quarterly for 2 years. (a) How much money does Heather need to borrow? Heather needs to borrow $ ____    . (b) What are her payments? Heather's payments are $ _____ per quarter. (c) Make an amortization table for her payments. End of Period Interest Charged Payment Payment towards Principal Outstanding Principal 0 -- -- --   1         2         3         4         5         6         7         8

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
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Heather has $13,000 to put down on a new car priced at $25,000. The bank offers an annual interest rate of 5.5% compounded quarterly for 2 years.

(a) How much money does Heather need to borrow?
Heather needs to borrow $ ____    .
(b) What are her payments?
Heather's payments are $ _____ per quarter.
(c) Make an amortization table for her payments.

End of Period Interest Charged Payment Payment towards Principal Outstanding Principal
0 -- -- --  
1        
2        
3        
4        
5        
6        
7        
8        

(d) How much interest did she pay in the two years?
Heather paid $ ____ in interest.

 

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d) How much interest did she pay in the two years?
Heather paid $ ____ in interest.

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