hase a used sports utility vehicle costing $30,000 by taking out a 9% add-on installment loan. The loan requires a 15% down payment and equal monthly payments for 5 years. How much are your monthly payments?

hase a used sports utility vehicle costing $30,000 by taking out a 9% add-on installment loan. The loan requires a 15% down payment and equal monthly payments for 5 years. How much are your monthly payments?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Question

You purchase a used sports utility vehicle costing $30,000 by taking out a 9% add-on installment loan. The loan
requires a 15% down payment and equal monthly payments for 5 years. How much are your monthly payments?

$616.25

$695.24

$709.52

$776.19

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