44.
Laura Croft will lend you $10,000 today with terms that require you to pay off the loan in 36 monthly installments of $500 each. What is the effective annual rate of interest that Laura is charging you?
USE THE INFORMATION BELOW TO ANSWER THE FOLLOWING THREE QUESTIONS
Vito Scaletta just bought his dream car, 2021 Aston Martin DB11 V8 Shadow Edition that cost $228,700. He paid $50,000 down and financed the balance over 84months at 5.5% p.a. (Assume that Vitomakes all required payments on time).
45.
What is the monthly payment on Vito’sloan?
46.
What will the balance on Vito’sloan be at the end of the third year(that is, immediately after Vitomakes his 36th payment on the loan)?
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47.
What is the total amount of interest that Vitowill pay over the entire term of the loan(that is, the total amount of interest that is paid on payments 1 through 84)?