Question

Mr. Smith wants to buy a new car that will cost $ 18,000. Fie will make a down payment in the amount of $8,000. He would like to borrow the remainder from a bank at an interest rate of 9% compounded monthly. He agrees to pay off the loan monthly for a period of two years. Select the correct answer for the following questions: (a) What is the amount of the monthly payment A? İ. A = $10,000(A/P, 0.75%, 24) ii. A = $10,000(A/P, 9%, 2)/12 iii. A = $10,000(A/F, 0.75%, 24) iv. A = $12,500(A/F, 9%, 25/12 (b) Mr. Smith has made 12 payments and wants to figure out the balance remaining immediately after the 12th payment. What is that balance? i. B12 = 12A ii. B12 = A(P/A, 9%, 1)/12 iii. B12 = A(P/A, 0.75%, 12) iv. B12 = 10,000 - 12A

Answer 1

as well a _The_amount of monly payment A. t = $10,000 ( Aff, 0.75%, 24) = $156 - 847 Answelt opt after the rigth payment Bien Di The balance remaining wecame aliclelp Bio = A pity 0.15-4, 1:3) = $ 5001