What is the outstanding balance on the loan

Assignment Help Financial Management

Reference no: EM131192482

A car loan requires 6 monthly payments of $250 and has a 6% APR.1

(No principal amount was given)

(A) What is the present value of the loan one month before the first payment is due?

(B) A month from now, just after the first payment is made, what is the outstanding balance on the loan?

(C) If the loan were modified so that the APR was 0% in the first year, and 7.2% in the following 4 years, what would be the (constant) monthly payment have to be in order for you to borrow the same amount as computed in part (a)? (0 payments in the first year)

Reference no: EM131192482

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