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Karana Takes Out a Conventional Loan to Purchase a Car

Question 55

Multiple Choice

Karana takes out a conventional loan to purchase a car. The interest rate is 6.4% compounded monthly and Karana has 10 years to repay the $27,000 she borrowed. What are Karana's monthly payments?


A) $385.07
B) $305.21
C) $186.49
D) $171.48

Correct Answer:

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