A guitar manufacturer is making 50 guitars, at $350 each, for a music store. To pay the bill, the music store is taking out a bank loan at 6.4% interest, compounded monthly, with a 12-month term. The bank is offering a choice between two repayment schedules: Pay it off in one payment at the end of the term. Pay it off in monthly payments. a) If the loan is repaid in one payment, then the total payment will be $18 620, of which _____ is interest. b) If the loan is repaid in monthly payments, then each payment will be ____ and ____ in interest will be charged. I need some help and guidenice for this question. I also need the answers. The blank spaces are for answers, I currently cannot figure out what to do

A guitar manufacturer is making 50 guitars, at $350 each, for a music store. To pay the bill, the music store is taking out a bank loan at 6.4% interest, compounded monthly, with a 12-month term. The bank is offering a choice between two repayment schedules: Pay it off in one payment at the end of the term. Pay it off in monthly payments. a) If the loan is repaid in one payment, then the total payment will be $18 620, of which _ is interest. b) If the loan is repaid in monthly payments, then each payment will be and in interest will be charged. I need some help and guidenice for this question. I also need the answers. The blank spaces are for answers, I currently cannot figure out what to do

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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