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You Have an Outstanding Car Loan of $300 Per Month

Question 58

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You have an outstanding car loan of $300 per month for the next 2 years.As you are finishing your studies this year,it would be better if you could pay the full sum at the end of two years.If the interest rate on the loan is 6% per annum (compounded monthly),what final sum would the bank require at the end of two years so that it is indifferent between the two methods of payment?

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To find the final sum that the bank woul...

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