15) A car loan of $12,000 is to be repiad in 36 monthly payments of $364.00 each. After 24 payments the borrower decides to pay the remaining debt in full. a) How much interest is saved? ( use the rule of 78) b) How large is the final payment? c) What is the total amount paid to cancel the debt?
15) A car loan of $12,000 is to be repiad in 36 monthly payments of $364.00 each. After 24 payments the borrower decides to pay the remaining debt in full. a) How much interest is saved? ( use the rule of 78) b) How large is the final payment? c) What is the total amount paid to cancel the debt?
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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15) A car loan of $12,000 is to be repiad in 36 monthly payments of $364.00 each. After 24 payments the borrower decides to pay the remaining debt in full.
a) How much interest is saved? ( use the rule of 78)
b) How large is the final payment?
c) What is the total amount paid to cancel the debt?
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