You buy a car for $20,060 and get a grace period to not make payments for the first 6 months.However you still earn interest in that time, 2.19% every month. What is the value of the loan 6months after you bought the car when you make your first payment at the beginning of the (n+1]thmonth (end of the first month)

Here, Cost of Car is $20,060 Grace Period is first 6 months Interest Rate is 2.19% every month

Answered: You buy a car for $20,060 and get a…

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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Vijay
A year after buying her car, Anita has been offered a job in Europe.Her car loan is for $27,000 at a 6% nominal interest rate for 48 months. If she can sell the car for $20,000, how much does she get to keep after paying off the loan? 6-61 (a) You are paying off a debt at a nominal 8% per year by paying $400 at the end of each quarter for the next year. Find the interest paid in the last $400 payment. (b) If this debt were to be paid off in two equal payments of $1650 at the end of this year and next year, find the interest paid in the first $1650 payment. Again the loan rate is a nominal 8% per year compounded quarterly.
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