Can you please explain why the correct answers are the ones with
the blue arrows? Ty
Can You Please Explain Why The Correct Answers Are The Ones With The Blue Arrows Ty 1 (302.08 KiB) Viewed 32 times
Before you purchase the car, you stop to consider the monthly payments of an amortized loan. Specifically, consider the first monthly payment and the final monthly payment of the loan. Which of the following statements is correct? a) None of these answer choices are correct. b) The first and final payments contain identical amounts of interest expense and principal reduction. c) The first monthly payment contains more principal reduction than the final monthly payment. d) The first monthly payment contains more interest expense than the final monthly payment.
Although you know you cannot afford it right now, you also asked to test drive a new convertible sports car selling for $30,000. If you wanted to save money to buy a similar car someday, you believe you could save $220 every month toward this goal and earn 8% annually on your investments. If these assumptions hold true, how many months will it take you to achieve your savings goal of $30,000? 93 104 117 129
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