Asked by Monserrat Pacheco on Apr 27, 2024
Verified
Marcie bought a car for $32,000, put $5,000 down, and is making monthly payments at 3.8% compounded semi-annually for five years. What is the amount of Marcie's monthly payment? How much interest will Marcie pay overall?
Compounded Semi-annually
Refers to the process of applying interest to an initial sum and any accumulated interest on a semi-annual basis.
Monthly Payment
An amount of money that is regularly paid each month, often as part of a larger financial commitment or loan.
Car
A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.
- Absorb the fundamentals of compound interest and their use in estimating payments on loans.
- Calculate the disbursement amounts for loan obligations or saving stakes with diverse interest rates and compounding timings.
- Utilize financial calculations to determine the aggregate amount of interest dispensed over the lifespan of a borrowing.
Verified Answer
ZK
Learning Objectives
- Absorb the fundamentals of compound interest and their use in estimating payments on loans.
- Calculate the disbursement amounts for loan obligations or saving stakes with diverse interest rates and compounding timings.
- Utilize financial calculations to determine the aggregate amount of interest dispensed over the lifespan of a borrowing.