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a) Bubba bought a car for $60,000, putting down $20,000 cash and financing the remainder. How...

a) Bubba bought a car for $60,000, putting down $20,000 cash and financing the remainder. How much are his monthly car payments if he financed the car for 6 years and paid a nominal annual interest rate of 6 percent?

b) How much will his payments be if he makes the payments at the beginning of each month?

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Answer #1

a)

Hence, monthly payment is $662.92

b)

Hence, monthly payment is $659.62

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