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Loan Payoff Amount

Subject Category
Corporate Finance

Question Details

When you purchased your car, you took out a five-year annual payment loan with an interest rate of 6.4% per year (i.e. EAR=6.4%). The annual payment on the car is $4,900. You have just made a payment and have now decided to pay off the loan by repaying the outstanding balance. If you have owned the car for one year, what is the payoff amount?

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