Question

The repayment schedule for the ARSLAN truck requires a down payment of 10% while the repayment schedule for the HIDRO-MAX truck requires a down payment of 15%. If the repayment is over a period of 7 years at an annual loan rate of 6%, what would be the monthly repayment amount for both schedules? Assume that the monthly repayment starts 1 month after the mortgage contract is signed and the down payment made. Show all calculations.

Answer 1

Let the initial cost of each of the trucks is $ 100,000

For truck ARSLAN:

For truck HIDRO-MAX: