Two years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.9% APR with monthly compounding. You monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV. Assume you have made all of the first 24 payments on time. What equation and correct inputs do you need to solve in order to compute the outstanding loan balance after your 24th monthly payment? a) b) and correct inputs do you need to solve in order to compute the original loan You are now told that PV = $20,316.80 from part (a). What equation amount? You are now told that the original loan amount from part (b) is $33,000. Calculate the actual dollar amount of interest you have paid over the first two years of this loan?
Two years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.9% APR with monthly compounding. You monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV. Assume you have made all of the first 24 payments on time. What equation and correct inputs do you need to solve in order to compute the outstanding loan balance after your 24th monthly payment? a) b) and correct inputs do you need to solve in order to compute the original loan You are now told that PV = $20,316.80 from part (a). What equation amount? You are now told that the original loan amount from part (b) is $33,000. Calculate the actual dollar amount of interest you have paid over the first two years of this loan?
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
Problem 1PS
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Transcribed Image Text:Two years ago you purchased a new SUV. You financed your SUV for 60 months
(with payments made at the end of the month) with a loan at 5.9% APR with
monthly compounding. You monthly payments are $617.16 and you have just
made your 24th monthly payment on your SUV.
Assume you have made all of the first 24 payments on time.
a) What equation and correct inputs do you need to solve in order to
compute the outstanding loan balance after your 24th monthly payment?
You are now told that PV = $20,316.80 from part (a). What equation
and correct inputs do you need to solve in order to compute the original loan
b)
amount?
You are now told that the original loan amount from part (b) is
$33,000. Calculate the actual dollar amount of interest you have paid over the first
c)
two years of this loan?
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