Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer payments for 12 months, and Kris makes 48 end-of month payments thereafter. If the original note (loan) is for $28,000 and interest in 6% compounded monthly on the unpaid balance, how much will Kris’ payment be?

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.19E
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Kris borrows some money in her senior year to buy a new car. The car dealership allows her to defer payments for 12 months, and Kris makes 48 end-of month payments thereafter. If the original note (loan) is for $28,000 and interest in 6% compounded monthly on the unpaid balance, how much will Kris’ payment be?

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