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Monthly payment be on loan

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After accepting your first job after graduation. you have decided to use your Signing bonus to purchase a car. The dealer has a special promotion such that if you finance at least 520.000 they will give you a 5 year loan with an APR of 2%. Assume that you take them up on their offer and finance exactly 520.000.

(A) What will your monthly payment be on this loan?

(b) What will your ending balance on the loan be at then end of your first year of payments?

(c) Now assume that you decide to pay an additional $50 per month on the loan (applied directly to principal). How much faster (in months) will you pay off the loan With this strategy compared to the original 5 year term?

Reference no: EM133126153

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