Problem:
You just bought a car for $17,500 and have a 5 year loan at 8% interest.
Required:
Task1. Calculate the monthly payment. Assume you are one year into your loan (so you have already made 12 payments) for questions 2 & 3.
Task2. How much do I still owe?
Task3. How much interest have I paid in the last 12 months? Again, assume I'm one year into my loan and I add $50 to my monthly payment, how soon could I pay off the car? Please justify your answer appropriately.
Please justify your answer appropriately.