A recent college graduate buys a new car by borrowing $24,000 at 8.4%, compounded monthly, for 5 years. She decides to pay $517 instead of the monthly payment required by the loan. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) $ How much extra did she pay per month? (Round your answer to the nearest cent.) $ (b) How many $517 payments will she make to pay off the loan? (Round your answer up to the next whole number.) payments (c) How much will she save by paying $517 per month rather than the required payment? (Round your answer to the nearest cent.) $
A recent college graduate buys a new car by borrowing $24,000 at 8.4%, compounded monthly, for 5 years. She decides to pay $517 instead of the monthly payment required by the loan. (a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.) $ How much extra did she pay per month? (Round your answer to the nearest cent.) $ (b) How many $517 payments will she make to pay off the loan? (Round your answer up to the next whole number.) payments (c) How much will she save by paying $517 per month rather than the required payment? (Round your answer to the nearest cent.) $
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 23PROB
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Question
A recent college graduate buys a new car by borrowing $24,000 at 8.4%, compounded monthly, for 5 years. She decides to pay $517 instead of the monthly payment required by the loan.
(a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.)
$
How much extra did she pay per month? (Round your answer to the nearest cent.)
$
(b) How many $517 payments will she make to pay off the loan? (Round your answer up to the next whole number.)
payments
(c) How much will she save by paying $517 per month rather than the required payment? (Round your answer to the nearest cent.)
$
$
How much extra did she pay per month? (Round your answer to the nearest cent.)
$
(b) How many $517 payments will she make to pay off the loan? (Round your answer up to the next whole number.)
payments
(c) How much will she save by paying $517 per month rather than the required payment? (Round your answer to the nearest cent.)
$
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