You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 6.6%, your loan payments are $639 per month, and you have 36 months left on your loan. If you pay an additional $1,500 with your next regular $639 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) a) The new time left to pay off your loan will be ______months. b) Thus, you reduce the amount of time remaining in the loan by approximately _____ months.
You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 6.6%, your loan payments are $639 per month, and you have 36 months left on your loan. If you pay an additional $1,500 with your next regular $639 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) a) The new time left to pay off your loan will be ______months. b) Thus, you reduce the amount of time remaining in the loan by approximately _____ months.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 14P
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You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 6.6%, your loan payments are
$639 per month, and you have 36 months left on your loan. If you pay an additional $1,500 with your next regular $639 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.)
a) The new time left to pay off your loan will be ______months.
b) Thus, you reduce the amount of time remaining in the loan by approximately _____ months.
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