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An Installment Contract for the Purchase of a Car Requires

Question 12

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An installment contract for the purchase of a car requires payments of $570.60 at the end of each month for the next three years. Suppose interest is 11.8% p.a. compounded monthly.
a) What is the amount financed?
b) How much is the interest cost?

Correct Answer:

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a) PVn = 570.60 blured image = 570.60(30.19...

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