You have 45 remaining monthly payments of $688 until you pay off your car loan with interest. Assuming you borrowed money at 8.8% interest, what is the current balance if you wanted to pay it off today? Answer to the nearest whole dollar (no decimal places
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
You have 45 remaining monthly payments of $688 until you pay off your car loan with interest. Assuming you borrowed money at 8.8% interest, what is the current balance if you wanted to pay it off today?
Answer to the nearest whole dollar (no decimal places)
In order to find the current balance of the loan today one has to find the Present value of the loan. In excel one can use PV function to compute.
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