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Lionel Cooper paid for new mechanic's tool with an installment loan of $6,000. months with a payment of $187.80. After 20 payments, the balance is $2,849.0 loan when the next payment is due. a. What is the current month's interest? b. What is the final payment? c. How much is saved by paying the loan off early?

Lionel Cooper paid for new mechanic's tool with an installment loan of $6,000. months with a payment of $187.80. After 20 payments, the balance is $2,849.0 loan when the next payment is due. a. What is the current month's interest? b. What is the final payment? c. How much is saved by paying the loan off early?

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
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3. Lionel Cooper paid for new mechanic's tool with an installment loan of $6,000.00 at 8% for 36 months with a payment of $187.80. After 20 payments, the balance is $2,849.08. He pays off the loan when the next payment is due. a. What is the current month's interest? b. What is the final payment? c. How much is saved by paying the loan off early?
Transcribed Image Text:3. Lionel Cooper paid for new mechanic's tool with an installment loan of $6,000.00 at 8% for 36 months with a payment of $187.80. After 20 payments, the balance is $2,849.08. He pays off the loan when the next payment is due. a. What is the current month's interest? b. What is the final payment? c. How much is saved by paying the loan off early?
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