On September 1, 2009, Susan Chao bought a motorcycle for $30,000. She paid $1,000 down and financed the balance with a five-year loan at a stated annual interest rate of 7.2 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2009). Two years later, at the end of October 2011, Susan got a new job and decided to pay off the loan. If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2011?
On September 1, 2009, Susan Chao bought a motorcycle for $30,000. She paid $1,000 down and financed the balance with a five-year loan at a stated annual interest rate of 7.2 percent, compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2009). Two years later, at the end of October 2011, Susan got a new job and decided to pay off the loan. If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2011?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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On September 1, 2009, Susan Chao bought a motorcycle for
$30,000. She paid $1,000 down and financed the balance with a five-year loan at
a stated annual interest rate of 7.2 percent, compounded monthly. She started the
monthly payments exactly one month after the purchase (i.e., October 1, 2009). Two
years later, at the end of October 2011, Susan got a new job and decided to pay off
the loan. If the bank charges her a 1 percent prepayment penalty based on the loan
balance, how much must she pay the bank on November 1, 2011?
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