To Purchase a new truck , you borrow $42000. The bank offers an interest rate of 7.5 % compunded monthly. If you take a 5-years loan and you will be making monthly payments, what is the total amount that must be paid back ? a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i). Per period of time. should be used in solving this problme ? c.Is the present singel amount of money ( P) known ? ( Yes or No ) d. which time value factor should be used to solve this problem ? e. What amount must be paid back each month ? F. what is the total amount that will be paid back over that life of the loan ?
To Purchase a new truck , you borrow $42000. The bank offers an interest rate of 7.5 % compunded monthly. If you take a 5-years loan and you will be making monthly payments, what is the total amount that must be paid back ? a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i). Per period of time. should be used in solving this problme ? c.Is the present singel amount of money ( P) known ? ( Yes or No ) d. which time value factor should be used to solve this problem ? e. What amount must be paid back each month ? F. what is the total amount that will be paid back over that life of the loan ?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
Problem 6R
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To Purchase a new truck , you borrow $42000. The bank offers an interest rate of 7.5 % compunded monthly. If you take a 5-years loan and you will be making monthly payments, what is the total amount that must be paid back ?
a. What is the number of time periods (n) you should use in solving this problem?
b. What rate of interest (i). Per period of time. should be used in solving this problme ?
c.Is the present singel amount of money ( P) known ? ( Yes or No )
d. which time value factor should be used to solve this problem ?
e. What amount must be paid back each month ?
F. what is the total amount that will be paid back over that life of the loan ?
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