Problem
I. Mr. Jones decides to purchase a used car for $25,000. Mr. Jones has a good credit rating, so the dealer offers to finance the car at 6% interest over a 5 year period. What is the monthly payment amount that Mr. Jones would be expected to pay?
II. Given the same information, Mr Jones decides that 5 years is really to long to finance a used car. What payment would he be expected to pay if he finances the car for 4 years instead of 5?
III. Given the same information in question, how much will Mr. Jones still owe on his car at the end of 3 years, assuming he makes all payments on time?