A friend of yours is interested in purchasing a motor vehicle with at a cost of $3.5 million. The bank has indicated that they are willing to finance 80% of the purchase price at a rate of 12% p.a. over 4 ½ years with equal monthly repayments. Your friend has asked you to Compute the required monthly payments. (round to the nearest dollar) Prepare the Loan amortization schedule for the first 4 months (round to the nearest dollar). Determine how much would be required to close the loan after 2 ½ years.

A friend of yours is interested in purchasing a motor vehicle with at a cost of $3.5 million. The bank has indicated that they are willing to finance 80% of the purchase price at a rate of 12% p.a. over 4 ½ years with equal monthly repayments. Your friend has asked you to Compute the required monthly payments. (round to the nearest dollar) Prepare the Loan amortization schedule for the first 4 months (round to the nearest dollar). Determine how much would be required to close the loan after 2 ½ years.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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