Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance amount at 2.7% compounded monthly for 6 years. a) If Kristen pays an additional $50 per month, how many periods will it take to pay off the load?

Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance amount at 2.7% compounded monthly for 6 years. a) If Kristen pays an additional $50 per month, how many periods will it take to pay off the load?

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

3. Kristen purchased a car for $43,000; she paid $2150 as a down payment and financed the balance amount at 2.7% compounded monthly for 6 years.

a) If Kristen pays an additional $50 per month, how many periods will it take to pay off the load?

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If Kristen pays an additional $50 per month, the monthly payment will be:

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Calculation of New Loan period in case of New Monthly Payment:

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