A car cost $45000 inclusive of gst. Option:1 Fully Amortizing loan with 10.25% per annum fixed. Option: 2 Interest are pre computed at 10.25% per annum. Loan term for both option is 5 years. Customer wants to pay a down payment of 10% of car value and balloon 10% of the loan size.
a) How much to pay at the end of each month in both options?
b) Total amount outstanding at the begining of 30th period under both options?
c) Amount of interest payable with the 40th payment under both options?