Question

One plans to borrow 400000 to buy a new car. the loan will be for 3 years at 12 percent annual rate compounded monthly. he can pay 12500 per month during the first year. what amount would he pay during the next two years to repay the loan?

Answer 1

17165.47 to two decimal places

Explanation:

Do 400000 X 1.12^3 = 561971.20

Do 12500 * 12 = 150000

Do 561971.20 - 150000 = 411971.20

411971.20 / 24 = 17165.47 per month for 2 years