Hi expart give correct solution for this question You borrow $6,230 to buy a car. The terms of the loancall for monthly payments for 5 years a rate of interestof 6 percent. What is the amount of each payment?a. $115.26.b. $88.74.c. $113.78.d. $120.44.e. $89.29.

Monthly payment for a loan (compounding monthly) is given…

Answered: You borrow $6,230 to buy a car. The…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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You borrow $6,230 to buy a car. The terms of the loan call for monthly payments for 5 years a rate of interest of 6 percent. What is the amount of each payment? a. $115.26. b. $88.74. c. $113.78. d. $120.44. e. $89.29.