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Loan Payments You Wish to Buy a $20,000 Car

Question 142

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Loan Payments You wish to buy a $20,000 car.The dealer offers you a 3-year loan with an 8 percent APR.What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such a decision be?

Correct Answer:

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Monthly payments:
N = 3 × 12 = 36
I = 8/...

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