Total amount of interest the person

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Reference no: EM131187997

A customer come to you and asks to receive valuable advice supported with calculations on the purchase of used car. Assuming the car costs $91,500 and would be fully financed from bank for 4 years and at interest of 7%, calculate to the client of following:

a. Annual payment for this loan

b. Total amount of interest the person would pay on this loan over the life of loan

c. Now assume the costumer gets offer to sell the car and decides to sells the car for $81,000 after two years of paying loan to the bank. Calculate the amount of money he would keep from this transaction counting the fact that at the moment of sale he has to make onetime payment to the bank equal to full remaining balance of loan.

Reference no: EM131187997

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