Aerotron electronics has just bought a used delivery truck, Ask an Expert

Finance

Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire 1st year and then to pay $516.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month).

(Round your answer to 4 decimal places for a and b. The tolerance is +/- 0.0005.

Round your answers to the nearest whole dollar for c-e. The tolerance is +/- $5.00)

a. What nominal interest rate is Aerotron paying on the loan?

Entry field with incorrect answer%

b. What effective interest rate are they paying?

Entry field with incorrect answer%

c. How much of the 14th month’s payment is interest? How much is principal?

payment interest = $Entry field with incorrect answer, and principal = $Entry field with incorrect answer

d. How much of the 18th month’s payment is interest? How much is principal?

payment interest = $Entry field with incorrect answer, and principal = $Entry field with incorrect answer

e. How much of the 22nd month’s payment is interest? How much is principal?

payment interest = $Entry field with incorrect answer, and principal = $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91729474

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