QUESTION 8 Auto Loans R Them loans your $24,000 for four years to buy a car. The loan must be repaid in 4 years (48 monthly) payments. The annual interest rate on the loan is 3.5%. What are the annual payments? $86.08 $1,039.36 $536.54 $6,534.03

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.