The Smiths want to buy a 2014 Nissan Altima for $25,230. Bank of America will charge them a 5.35% annual rate compounded monthly for a 5-year loan.
If the Smith’s can afford a $415 monthly payment, how much do they need to borrow?
How much would the Smiths need for a down payment?
Prepare a loan amortization table showing principal and interest payments required to pay off the loan.