Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi- monthly payments of $250? How much sooner will the loan be paid off?
Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi- monthly payments of $250? How much sooner will the loan be paid off?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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![Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly
payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi-
monthly payments of $250? How much sooner will the loan be paid off?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbed8a321-9f3c-4f2c-b1f3-547d2f39cfed%2F648fc43c-678e-44b3-a6d3-6779b43044b5%2Fttv9czp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly
payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi-
monthly payments of $250? How much sooner will the loan be paid off?
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