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You buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives you a “special” rate of “9% monthly” for 48 months. a) What is your monthly payment? b) How much of your first payment goes to interest? c) How much interest do you pay for the entire loan?

You buy a ten-year-old car for $12,000. You decide to pay $2000 down, and the used car dealer gives you a “special” rate of “9% monthly” for 48 months. a) What is your monthly payment? b) How much of your first payment goes to interest? c) How much interest do you pay for the entire loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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You buy a ten-year-old car for $12,000. You decide to pay $2000
down, and the used car dealer gives you a “special” rate of “9% monthly” for 48 months.

a) What is your monthly payment?
b) How much of your first payment goes to interest?
c) How much interest do you pay for the entire loan?
d) What is your final payment for this car?

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