Chris bought a new car for $12,500. He made a $3,000 down payment and financed the rest at an annual interest rate of 14.5% for 36 months (3 years). How much less would his total interest be for the same loan for 24 months (2 years)? A. $1,387.50 B. $1,377.50 C. $1,367.50 D. $1,357.50

Chris bought a new car for $12,500. He made a $3,000 down payment and financed the rest at an annual interest rate of 14.5% for 36 months (3 years). How much less would his total interest be for the same loan for 24 months (2 years)? A. $1,387.50 B. $1,377.50 C. $1,367.50 D. $1,357.50

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 19PROB

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Question

22. Chris bought a new car for $12,500. He made a
$3,000 down payment and financed the rest at an
annual interest rate of 14.5% for 36 months (3 years).
How much less would his total interest be for the
same loan for 24 months (2 years)?
A. $1,387.50
B. $1,377.50
C. $1,367.50
D. $1,357.50
3. Which of the loans should you try to pay off first?
A.
a loan for $3,400 at 16%

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