A commercial bank will loan you $7,500 for two years to buy a car. - 2995

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Request Description

A commercial bank will loan you $7,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan is 12% of the unpaid balance. What is the amount of the monthly payments?

            a.         $282.43

            b.         $390.52

            c.         $369.82

            d.         $353.05

Solution Description

A commercial bank will loan you $7,500 for two years to buy a car. The loan must be repaid in 24 equal monthly payments. The annual interest rate on the loan i