Reference no: EM131014124
Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire 1st year and then to pay $516.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month).
(Round your answer to 4 decimal places for a and b. The tolerance is +/- 0.0005.
Round your answers to the nearest whole dollar for c-e. The tolerance is +/- $5.00)
a. What nominal interest rate is Aerotron paying on the loan?
%
b. What effective interest rate are they paying?
%
c. How much of the 14th month’s payment is interest? How much is principal?
payment interest = $, and principal = $
d. How much of the 18th month’s payment is interest? How much is principal?
payment interest = $, and principal = $
e. How much of the 22nd month’s payment is interest? How much is principal?
payment interest = $, and principal = $
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