I need help setting up question 7 **Example Calculation: Koi Fish Pond Financing**Julio buys a koi fish pond (and fish to put in it) for his wife on their anniversary. He pays $8,000 for the pond with $2,000 down. The dealer charges add-on-interest of 3.5% per year, and Julio agrees to pay the loan with 36 equal monthly payments. Use this information for Exercise 7-10.**7. Calculate the total amount of interest he will pay.****8. Determine the monthly payment.****9. Identify the APR value (to the nearest half percent).**In this scenario, you are asked to use the given financial details to find specific loan-related values. You will need to apply your understanding of add-on interest rates, monthly payment calculations, and APR (Annual Percentage Rate) to solve these exercises.

For an add-on interest loan, the interest paid on the loan is simply the simple interest on the…

Julio buys a koi fish pond (and fish to put in it) for his wife on their anniversary. He pays $8,000 for the pond with $2,000 down. The dealer charges add-on-interest of 3.5% per year, and Julio agrees to pay the loan with 36 equal monthly payments. Use this information for Exercise 7-10.

Julio buys a koi fish pond (and fish to put in it) for his wife on their anniversary. He pays $8,000 for the pond with $2,000 down. The dealer charges add-on-interest of 3.5% per year, and Julio agrees to pay the loan with 36 equal monthly payments. Use this information for Exercise 7-10.

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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I need help setting up question 7

**Example Calculation: Koi Fish Pond Financing**

Julio buys a koi fish pond (and fish to put in it) for his wife on their anniversary. He pays $8,000 for the pond with $2,000 down. The dealer charges add-on-interest of 3.5% per year, and Julio agrees to pay the loan with 36 equal monthly payments. Use this information for Exercise 7-10.

**7. Calculate the total amount of interest he will pay.**

**8. Determine the monthly payment.**

**9. Identify the APR value (to the nearest half percent).**

In this scenario, you are asked to use the given financial details to find specific loan-related values. You will need to apply your understanding of add-on interest rates, monthly payment calculations, and APR (Annual Percentage Rate) to solve these exercises.

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