An installment contract for the purchase of a car requires payments of $206.37 at the end...

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An installment contract for the purchase of a car requires payments of $206.37 at the end...

An installment contract for the purchase of a car requires payments of $206.37 at the end of each month for 66 years. Interest is 9% per annum compounded monthly.monthly.

(a) What is the amount financed?

(b) How much is the interest cost?

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Answer 1

Answer #1

Amount financed Px[1-(1-(1+r)^n)]=r Here, 9% 12 A Interest rate per annum B Number of years C Number of compoundings per per

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Answer 2

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An installment contract for the purchase of a car requires payments of $282.39 at the end...

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