On September 1, 2021, Susan Chao bought a motorcycle for $33,000. She paid $1,000 down and financed the balance with a five-year loan at an annual percentage rate of 7.5 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2021). Two years later, at the end of October 2023, Susan got a new job and decided to pay off the loan. If the bank charges her
On September 1, 2021, Susan Chao bought a motorcycle for $33,000. She paid $1,000 down and financed the balance with a five-year loan at an annual percentage rate of 7.5 percent compounded monthly. She started the monthly payments exactly one month after the purchase (i.e., October 1, 2021). Two years later, at the end of October 2023, Susan got a new job and decided to pay off the loan. If the bank charges her
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 61P
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![On September 1, 2021, Susan Chao bought a
motorcycle for $33,000. She paid $1,000 down and
financed the balance with a five-year loan at an annual
percentage rate of 7.5 percent compounded monthly.
She started the monthly payments exactly one month
after the purchase (i.e., October 1, 2021). Two years
later, at the end of October 2023, Susan got a new job
and decided to pay off the loan. If the bank charges her
a 2 percent prepayment penalty based on the loan
balance, how much must she pay the bank on
November 1, 2023?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87c2a2e7-f84a-4f95-a720-ffeeb52e11a1%2Fe1d736b4-eea3-46de-af0f-c7cacd0b4e09%2Fciu37te_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On September 1, 2021, Susan Chao bought a
motorcycle for $33,000. She paid $1,000 down and
financed the balance with a five-year loan at an annual
percentage rate of 7.5 percent compounded monthly.
She started the monthly payments exactly one month
after the purchase (i.e., October 1, 2021). Two years
later, at the end of October 2023, Susan got a new job
and decided to pay off the loan. If the bank charges her
a 2 percent prepayment penalty based on the loan
balance, how much must she pay the bank on
November 1, 2023?
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