Tim wants to buy a new boat for &9,500. If the store is going to charge Tim 8% annual interest on his purchase (assume an add-on loan) answer the following questions. (Worth 3 questions); a. Tim wants to pay the boat off in 3 years, how much will his monthly payment be? b. If Tim makes a down payment of $1,500, what will his new monthly payment be? c. If Tim wants his monthly payments

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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Tim wants to buy a new boat for &9,500. If the store is going to charge Tim 8% annual interest on his purchase (assume an add-on loan) answer the following questions. (Worth 3 questions);

a. Tim wants to pay the boat off in 3 years, how much will his monthly payment be?

b. If Tim makes a down payment of $1,500, what will his new monthly payment be?

c. If Tim wants his monthly payments to be $175, how much should his down payment be?

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