Jennifer Cho is a GMU finance graduate who was recently hired by a New York Investment Banking firm. To celebrate her new job, Jennifer purchased a 2018 Mercedes Benz E400 Coupe for $53,945. She financed the entire purchase price with a60 monthloan from a local bank. The interest rate on the loan is 6% per year, compounded monthly.
What is the monthly payment on the car loan?
Jennifer finds that it is difficult to park her new car in Manhattan. Consequently, two months after making this purchase (at t= month 2, the instant after she made the t=month 2 loan payment), Jennifer sells the car. What is the loan payoff amount due to the bank?