a loan of 25,000 has the following terms. the nominal interest rate is 8% compounded monthly; there will be n payments of 489.9 each starting at the end of the first month; and there will be one larger payment at the end of n+1 months. immediately after the 18th payment, the borrower refinances the loan with a new 24 month loan with a nominal 4.5% rate compounded monthly. the first payment is due one month after refinancing. what is the new monthly payment?
a loan of 25,000 has the following terms. the nominal interest rate is 8% compounded monthly; there will be n payments of 489.9 each starting at the end of the first month; and there will be one larger payment at the end of n+1 months. immediately after the 18th payment, the borrower refinances the loan with a new 24 month loan with a nominal 4.5% rate compounded monthly. the first payment is due one month after refinancing. what is the new monthly payment?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 6FPE
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a loan of 25,000 has the following terms. the nominal interest rate is 8% compounded monthly; there will be n payments of 489.9 each starting at the end of the first month; and there will be one larger payment at the end of n+1 months. immediately after the 18th payment, the borrower refinances the loan with a new 24 month loan with a nominal 4.5% rate compounded monthly. the first payment is due one month after refinancing. what is the new monthly payment?
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