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You Have Just Purchased a New Mercedes for $65,000

Question 63

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You have just purchased a new Mercedes for $65,000.You have made a $12,000 down payment and have signed an installment note for the $53,000.The note has an interest rate of 8% and calls for you to make twenty quarterly payments starting three months from today.What will be the amount of each quarterly payment on this loan? How much of the first payment will be principal and how much will be interest?

Correct Answer:

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PV = $53,000,r = 8%,c = 4,n = ...

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