Question 3 • FT GMS AMDM B IC – 72
There are 12 quarterly payments in 3 years, and the quarterly interest rate is 5.6% ÷ 4 = 1.4%. Using the loan payment formula, payment = 13,010(0.014) ÷ [1 − (1.014)^(-12)] ≈ $1,185.34. The correct choice is $1,185.34.
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