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Ross purchased a new commercial vehicle today for $25,000 with a down payment of $3,000. The...

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Finance

Ross purchased a new commercial vehicle today for $25,000 with adown payment of $3,000. The amount was financed using a five-yearloan with a 4 percent interest rate (compounded monthly). How muchwill Ross owe on his vehicle loan after making payments for threeyears?

Answer & Explanation Solved by verified expert
3.5 Ratings (270 Votes)
The answer is 933021 Calculations and explanations Here the 1st step is to compute the monthly payments We can do this using the PMT function in excel Type the following syntax PMT412 60 22000 This will yield an amount of 40516 Thus Ross will pay 40516 on a monthly basis Note that 60 5 years 12 months per year and 22000 250003000 The next step is to make an amortization table as    See Answer
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Ross purchased a new commercial vehicle today for $25,000 with adown payment of $3,000. The amount was financed using a five-yearloan with a 4 percent interest rate (compounded monthly). How muchwill Ross owe on his vehicle loan after making payments for threeyears?

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