14. -/1 POINTS SMITHNM13 11.2.053. MY NOTES ASK YOUR TEACHER For the car loan described, give the following information. A car dealer will sell you a used car for $6,298 with $798 down and payments of $162.51 per month for 48 months. (a) amount to be paid (b) amount of interest (c) interest rate (Round your answer to two decimal places.) (d) APR (rounded to the nearest tenth of a percent) Need Help? Read It Talk to a Tutor 15. 0/1 POINTS PREVIOUS ANSWERS SMITHNM13 11.2.059. MY NOTES ASK YOUR TEACHER Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 13% (add-on rate). If the refrigerator at Sears costs $1,528 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.) Need Help? Watch It Talk to a Tutor Read It 1/4 POINTS PREVIOUS ANSWERS SMITHNM13 11.2.044. MY NOTES ASK YOUR TEACHER 11. Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,410 with factory and dealer rebates of $6,00o (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.) Enter a number. (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.) (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) (d) State whether the 0% APR or the 2.5% add-on rate should be preferred. O 0% APR O 2.5% add-on rate Need Help? Read It Talk to a Tutor Submit Answer Practice Another Version
14. -/1 POINTS SMITHNM13 11.2.053. MY NOTES ASK YOUR TEACHER For the car loan described, give the following information. A car dealer will sell you a used car for $6,298 with $798 down and payments of $162.51 per month for 48 months. (a) amount to be paid (b) amount of interest (c) interest rate (Round your answer to two decimal places.) (d) APR (rounded to the nearest tenth of a percent) Need Help? Read It Talk to a Tutor 15. 0/1 POINTS PREVIOUS ANSWERS SMITHNM13 11.2.059. MY NOTES ASK YOUR TEACHER Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one. Sears offers them an installment loan at 13% (add-on rate). If the refrigerator at Sears costs $1,528 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years, what is the monthly payment? (Round your answer to the nearest cent.) Need Help? Watch It Talk to a Tutor Read It 1/4 POINTS PREVIOUS ANSWERS SMITHNM13 11.2.044. MY NOTES ASK YOUR TEACHER 11. Assume the car can be purchased for 0% down for 60 months (in lieu of rebate). A BMW that has a sticker price of $62,410 with factory and dealer rebates of $6,00o (a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.) Enter a number. (b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.) (c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.) (d) State whether the 0% APR or the 2.5% add-on rate should be preferred. O 0% APR O 2.5% add-on rate Need Help? Read It Talk to a Tutor Submit Answer Practice Another Version
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:14.
-/1 POINTS
SMITHNM13 11.2.053.
MY NOTES
ASK YOUR TEACHER
For the car loan described, give the following information.
A car dealer will sell you a used car for $6,298 with $798 down and payments of $162.51 per month for 48 months.
(a) amount to be paid
(b) amount of interest
(c) interest rate (Round your answer to two decimal places.)
(d) APR (rounded to the nearest tenth of a percent)
Need Help?
Read It
Talk to a Tutor
15.
0/1 POINTS
PREVIOUS ANSWERS
SMITHNM13 11.2.059.
MY NOTES
ASK YOUR TEACHER
Karen and Wayne need to buy a refrigerator because theirs just broke. Unfortunately, their savings account is depleted, and they will need to borrow money in order to buy a new one.
Sears offers them an installment loan at 13% (add-on rate). If the refrigerator at Sears costs $1,528 plus 5% sales tax, and Karen and Wayne plan to pay for the refrigerator for 3 years,
what is the monthly payment? (Round your answer to the nearest cent.)
Need Help?
Watch It
Talk to a Tutor
Read It
Transcribed Image Text:1/4 POINTS
PREVIOUS ANSWERS
SMITHNM13 11.2.044.
MY NOTES
ASK YOUR TEACHER
11.
Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).
A BMW that has a sticker price of $62,410 with factory and dealer rebates of $6,00o
(a) Find the monthly payment if financed for 60 months at 0% APR. (Round your answer to the nearest cent.)
Enter a number.
(b) Find the monthly payment if financed at 2.5% add-on interest for 60 months. (Round your answer to the nearest cent.)
(c) Use the APR approximation formula to find the APR for part (b). (Round your answer to one decimal place.)
(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.
O 0% APR
O 2.5% add-on rate
Need Help?
Read It
Talk to a Tutor
Submit Answer
Practice Another Version
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 9 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education