Fritz Benjamin buys a car costing $20300. He agrees to make payments at the end of...

Question

Question

Answer 1

Answer #1

1) Monthly payment $ 415.51

2) Interest expense $ 4,630.47

Step-1:Calculate monthly payment

Monthly payment	=	=PMT(rate,nper,-pv)		Where,
	=	$ 415.51		rate	=	8.4%/12	=	0.007
				nper	=	5*12	=	60
				pv			=	$ 20,300

Step-2:Calculate total interest expense

Total repayment		$ 415.51	*	60	=	$ 24,930.47
Less Loan amount						$ 20,300.00

Interest Expense						$ 4,630.47

Answer 2

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