A truck costing $112 000 is paid off in monthly instalments over four years with 8% APR. After three years, the owner wishes to sell the truck. What is the closest amount below that he needs to pay on his loan before he can sell the truck?

Question

Quizplus · Accepted Answer

The loan is paid off over 48 months, and after 36 months, the owner has 12 months of payments left. The monthly payment can be calculated using the loan amortization formula. After calculating the remaining balance after 36 months, the closest amount below is $31,432.

A Truck Costing $112 000 Is Paid Off in Monthly