When you purchased your car, you took out a five-year annual-payment loan with a

Question

When you purchased your car, you took out a five-year annual-payment loan with an interest rate of 5.9% just made a payment and have now decided to pay off the loan by repaying the outstanding balance. What is the payoff amount for the following scenarios? per year. The annual pay ent on the car is S52 You have a. You have owned the car for one year (so there are four years left on the loan)? b. You have owned the car for four years (so there is one year left on the loan)? a. You have owned the car for one year (so there are four years left on the loan)? The payof if you have owned the car for one year (so there are four years left on the loan) is s (Round to the nearest cent) b. You have owned the car for four years (so there is one year left on the loan)? The payof if you have owned the car for four years (so there is one year left on the loan) is s. (Round to the nearest cent)

Explanation / Answer

a.

payoff or loan amount remaining=5200/(1+5.9%)^1+5200/(1+5.9%)^2+5200/(1+5.9%)^3+5200/(1+5.9%)^4=18059.89

b.

payoff or loan amount remaining=5200/(1+5.9%)^1=4910.29

the above is answer..

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