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Posted: June 29th, 2024
TRANSLATIO 101 A sports car enthusiast needs to finance $25,000 of the total purchase price
A sports car enthusiast needs to finance $25,000 of the total purchase price of a new car. A loan is selected having 48 monthly level payments with a lender charging 6% convertible monthly. However, the lender informs the buyer that their policy is not to exceed a $500 monthly payment on any car loan. The buyer decides to accept the loan offer with the $500 payment and then decides to take out a second 12-month loan with a different lender at 7.5% convertible monthly to make up the shortfall not covered by the first loan. Find the amount of the monthly payment on the second loan.
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