You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a s with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month f following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loa 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 dollar. Answer is complete but not entirely correct.
You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $93,500. You negotiate a s with no money down and no monthly payments during the first year. After the first year, you will pay $1,300 per month f following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loa 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 dollar. Answer is complete but not entirely correct.
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: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.
Answer is complete but not entirely correct.
Amount of balloon payment $ 22,378
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