(Answered) Problem - timothy smith is looking to purchase a mercedes

Finance

Problem: - Timothy Smith is looking to purchase a Mercedes Benz Roadster, whichhas a total cost of $340,000. Timothy plans to deposit $130,000 and willpay the rest by taking on a 7.5% 5-year loan.

Required:

a) What is the monthly payment on this car loan?

b) Prepare an amortisation table.

c) What is the loan balance at the end of year 3?

(Round the numbers to the nearest $)

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