Suppose you need to buy a car ($15,000), but you don't have enough money to fully pay for one. The only way you can buy one is to take out a car loan (entire amount of $15,000). The financing options is the followings: 5-year loan at 9% per year. What is the annual payment and the amount of repayment of principal in year 2?
Suppose you need to buy a car ($15,000), but you don't have enough money to fully pay for one. The only way you can buy one is to take out a car loan (entire amount of $15,000). The financing options is the followings: 5-year loan at 9% per year. What is the annual payment and the amount of repayment of principal in year 2?
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