You decide to finance a $21,000.00 car at a 4% interest rate for 4 years. A. How much will your monthly payment? My payment will be $______ a month B. How much interest will you pay over the life of the loan? I wil pay $______ in interest over the life of the loan

You decide to finance a $21,000.00 car at a 4% interest rate for 4 years. A. How much will your monthly payment? My payment will be $ a month B. How much interest will you pay over the life of the loan? I wil pay $ in interest over the life of the loan

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

You decide to finance a $21,000.00 car at a 4% interest rate for 4 years.

A. How much will your monthly payment?

My payment will be $______ a month

B. How much interest will you pay over the life of the loan?

I wil pay $______ in interest over the life of the loan

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