Response to the following:
1. You purchased a car using some cash and borrowing $15 000 (the present value) for 50 months at 12% per year. Calculate the monthly payment (annuity).
2. Referring to Problem, assume you have made 10 payments. What is the balance (present value) of your loan?
Problem:
You purchased a car using some cash and borrowing $15 000 (the present value) for 50 months at 12% per year. Calculate the monthly payment (annuity).