What amortization payment would you need to make every month, at 12% interest compounded monthly, to pay off a loan of $8,500 in 3 years? a. $3,538.97 b. $282.32 c. $197.32 d. $279.53

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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What amortization payment would
you need to make every month, at
12% interest compounded monthly,
to pay off a loan of $8,500 in 3 years?
a. $3,538.97
b. $282.32
c. $197.32
d. $279.53
Transcribed Image Text:What amortization payment would you need to make every month, at 12% interest compounded monthly, to pay off a loan of $8,500 in 3 years? a. $3,538.97 b. $282.32 c. $197.32 d. $279.53
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