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Lincoln Wants to Buy a New Mercedes-Benz Jeep

Question 128

Essay

Lincoln wants to buy a new Mercedes-Benz Jeep.He will need to borrow $20,000 to go with his down payment in order to afford this car.If car loans are available at a 6 percent annual interest rate, what will Lincoln's monthly payment be on a four-year loan?

Correct Answer:

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$20,000=PMT x [1-(1/...

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