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John borrows $30,000 to buy a new car from a local bank with 0.65% interest rate per month. He agrees to pay off the loan in 36 equal end-of-month payments. The first payment will be made at the end of this month.
a. What should be the monthly payment?
Report the answer with 2 numbers after decimal place
b. Make an amortization table showing his payment, interest payment, principal payment and loan balance over time. What is the Total Interest payment of the loan over the 36 months?
c. What must be the interest rate so that the total interest he pays to the bank over the life of the loan is 5562.74?
Report the answer in percentage term with 2 numbers after decimal place such as 12.43%.
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Suppose two athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal installments. In the other case, we're told that the $80 million will be paid in 10 installments, but the installments ..
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