You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.4%, your loan payments are $653 per month, and you have 3 months left on your loan. If you pay an additional $1,000 with your next regular $653 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) The new time left to pay off your loan will be months. (Round to one decimal place.) Thus, you reduce the amount of time remaining on the loan by approximately months. (Round to one decimal place.)
You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.4%, your loan payments are $653 per month, and you have 3 months left on your loan. If you pay an additional $1,000 with your next regular $653 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) The new time left to pay off your loan will be months. (Round to one decimal place.) Thus, you reduce the amount of time remaining on the loan by approximately months. (Round to one decimal place.)
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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Kk.108.
Transcribed Image Text:You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.4%, your loan payments are $653 per month, and you have 3 months left on your
loan. If you pay an additional $1,000 with your next regular $653 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any
intermediate steps less than 6 decimal places.)
The new time left to pay off your loan will be
Thus, you reduce the amount of time remaining on the loan by approximately
months. (Round to one decimal place.)
months. (Round to one decimal place.)
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