Problem
To purchase a new car it is necessary to borrow $18,550. The honk offers a 5-yr loan at an interest rate of 4I% compounded annually. If you make only one payment at the end of the loan period, repaying she principal and interest, what is the total amount that must be paid back?
a. What is the number of time periods (n) you should use in solving this problem?
b. What rate of interest (i), per period of time, should he used in solving this problem? • Is the present single amount of money (P) known? (Yes, No)
d. Which time value factor should be used to solve this problem?
e. What is the mud amount that must be paid back?
f. How much of the total amount repaid represents internt?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.