Business and Finance

timer Asked: Aug 24th, 2014
account_balance_wallet $5

Question Description

E-Loan, an online lending service recently offered 60-month auto loans at 6% compounded monthly to applicants with good credit ratings. If you have a good credit rating and can afford monthly payments of $338, how much can you borrow from E-Loan? What is the total interest you will pay for this loan?

Tutor Answer

School: UT Austin

Monthly payment =$338

No of installments =60

Rate = 0.06/12 =0.005

By providing excel formula = -pv(0.005,60,338)

Present value of such installments =$17483.24

E-loan = $17483

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