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Interest and the Time Value of Money

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1.
If you borrow $4000 from an online lending company to buy a PC and agree to pay it in 48 equal installments at 0.9% interest per month on the unpaid balance, how much are your monthly payments? (ans= $102.99)
And how much total interest will be paid. (ans= $943.52)

2.
A business borrows $80,000 at 9.42% interest compounded monthly for 8 years.
a.) what is the monthly payment?
b. what is the unpaid balance at the end of the first year
c.) how much interest was paid during the first year?

ANSWERS
a.) 1189.52,
b.) 72963.07
c.) 7237.31

These are the questions and the answers, these are homework problems but I have tried for hours and still cannot seem to get them to reach those answers. please Help !

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Solution Summary

Interest and the time value of money are investigated. The monthly payments paid are determined.

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