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You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon payment

You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon payment

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 4FPE: Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five...
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You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon payment
Transcribed Image Text:You are looking to purchase a Tesla Model X sport utility vehicle. The price of the vehicle is $95,500. You negotiate a six-year loan, with no money down and no monthly payments during the first year. After the first year, you will pay $1,500 per month for the following five years, with a balloon payment at the end to cover the remaining principal on the loan. The APR on the loan with monthly compounding is 4.4 percent. What will be the amount of the balloon payment six years from now? (Do not round monthly Interest rate calculation. Round Intermediate value calculation and final answer to 2 decimal places) Amount of balloon payment
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