You purchased a car using some cash and borrowing $19,000 (the present value) for 53 months at 12% per year. Calculate the monthly payment (annuity). Then assume you have made ten payments. What is the balance (present value) of your loan?
You purchased a car using some cash and borrowing $19,000 (the present value) for 53 months at 12% per year. Calculate the monthly payment (annuity). Then assume you have made ten payments. What is the balance (present value) of your loan?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:You purchased a car using some cash and borrowing $19,000 (the present value) for 53 months at 12% per
year. Calculate the monthly payment (annuity). Then assume you have made ten payments. What is the
balance (present value) of your loan?
The monthly payment at the specified loan rate over the given period is $
(Round to the nearest cent.)
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