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Ellie Takes Out a Conventional Loan to Purchase a Car

Question 42

Multiple Choice

Ellie takes out a conventional loan to purchase a car. The interest rate is 7.5% compounded monthly and Ellie has four years to repay the $12,000 she borrowed. What are Ellie's monthly payments?


A) $95.46
B) $139.33
C) $169.53
D) $290.15

Correct Answer:

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