Determine what is the size of monthly payment

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Problem 1. You need to borrow $21,000 to buy a truck. The current loan rate is 11% compounded monthly and you want to pay the loan off in equal monthly payments over 5 years. What is the size of your monthly payment? After 2 years, answer the following questions: How much do you still owe. How much have you paid so far? How much principal have you paid? How much interest have you paid so far?

Problem 2.
A given rate is quoted as 18% APR, it compounds daily. What is the effective annual rate? (365 days)

Reference no: EM132976664

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