You bought a new Lan Rover for $67,000 on October 31, 1999. The down payment was $15,000. A bank financed the remaining balance at 12 percent interest rate for 60 months with monthly payments. The first payment was made one month from the purchase date. If the interest on the loan is tax-deductible, you will need to figure out the interest you paid on the loan in 1999 when you file your income tax in 2000. (Note that you made 2 payments in 1999). What is the total amount of interest you paid in 1999 on the car loan? (Round your answer to the nearest whole dollar).
The PV of the Lan Rover = $67,000 - 15000 = 52000
Interest rate per month is 12%/12 = 1% per month
N = 60
Then compute the ...