Time remaining:
Business and Finance

Business & Finance
Tutor: None Selected Time limit: 0 Hours

Eloan

offer 48 mo. loans at 4.2% compounded monthly to applicants with good credit ratings.You have a good credit rating & afford monthly payments of $459.00, how much can you borrow? What is the total interest you will pay for this loan? round 2 dec

Aug 24th, 2014

No of months =48

Rate =0.042/12 =.0035

Monthly payment = 459

The present value of such stream of payments = 20248.22

Hence You can borrow $20248.22 i.e $20,248

The total payment in 48 months = 48*459=22032

Total Principal =20248

Total Interest = 22032-20248=1784

Answer : amount that can be borrowed = $20,248

Total Interest =$1784 ( more exactly $1783.78)

Aug 24th, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Aug 24th, 2014
...
Aug 24th, 2014
May 29th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer