You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now? Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to the nearest dollar. Amount of balloon payment
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 5 percent. What will be the amount of the balloon payment six years from now? Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to the nearest dollar. Amount of balloon payment
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 14P
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Question
![You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan,
with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following
five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly
compounding is 5 percent. What will be the amount of the balloon payment six years from now?
Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to the nearest dollar.
Amount of balloon payment](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5da679a4-7c84-4cf4-ad60-4519aefcc430%2F531fe160-a49f-4fd1-8b9b-a7e44a091b84%2Fydvf0v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a six-year loan,
with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month for the following
five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly
compounding is 5 percent. What will be the amount of the balloon payment six years from now?
Note: Do not round monthly interest rate calculation. Round intermediate value calculation and final answer to the nearest dollar.
Amount of balloon payment
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