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Maria borrowed money from a bank to invest in antiques. She took out a personal, amortized loan for $27,000, at an interest r
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Answer #1

a.

Calculating Monthly Payment,

Using TVM Calculation,

PMT = [PV = 27,000, FV = 0, N = 12, I = 0.0785/12]

PMT = $2,346.82

b.

Total Amount Paid = 12(2,346.82) = $28,161.84

c.

Total Interest Paid = (12)(2,346.82) - 27,000

Total Interest Paid = $1,161.84

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