How much of the total amount repaid represents interest

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To purchase a new car, you borrow $25,550. A car dealer offers a five-year loan at an interest rate of 5% compounded annually. If you make only payment at the end of the load period, repaying the principal and interest: (Textbook Problems 2.4) 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 be used in solving this problem? c) Is the present single amount of money (P) known? (Yes or No) d) Which time value factor should be used to solve this problem? e) What is the total amount that must be paid back? f) How much of the total amount repaid represents interest?

Reference no: EM131420657

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