Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1.000 down and financed the rest. with the agreement to pay nothing for the entire first year and then to pay $546.83 at the end of each month over years 2.3, and 4 (first payment is in 13th month). a. What nominal interest rate is Oerotro

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest.
with the agreement to pay nothing for the entire first year and then to pay $546.83 at the end of each month over vears 2.3. and 4
(first payment is in 13th month).
a. What nominal interest rate is Aerotron paying on the loan?
b. What effective interest rate are they paying?
nd v
c. How much of the 14th month's payment is interest? How much is principal?
payment interest-$
and principal $
d. How much of the 18th month's payment is interest? How much is principal?
payment interest $
,and principal $
e. How much of the 22nd month's payment is interest? How much is principal?
payment interest $
,and principal $
Transcribed Image Text:Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest. with the agreement to pay nothing for the entire first year and then to pay $546.83 at the end of each month over vears 2.3. and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? b. What effective interest rate are they paying? nd v c. How much of the 14th month's payment is interest? How much is principal? payment interest-$ and principal $ d. How much of the 18th month's payment is interest? How much is principal? payment interest $ ,and principal $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest $ ,and principal $
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