2 3 4 You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an APR of 4.7 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? Input area: 5 6 Cost of car APR Number of months $84,500 4.70% 7 8 9 Compounding periods per year 10 11 (Use cells A6 to B9 from the given information to complete this question. Your payment should be a positive value.) 12 13 14 15 Payment 16 Effective interest rate Output area: 60 12
2 3 4 You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an APR of 4.7 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? Input area: 5 6 Cost of car APR Number of months $84,500 4.70% 7 8 9 Compounding periods per year 10 11 (Use cells A6 to B9 from the given information to complete this question. Your payment should be a positive value.) 12 13 14 15 Payment 16 Effective interest rate Output area: 60 12
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
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Transcribed Image Text:1
WN
2
3
You want to buy a new sports coupe for $84,500, and the finance office at the
dealership has quoted you an APR of 4.7 percent for a 60-month loan to buy the
car. What will your monthly payments be? What is the effective annual rate on
this loan?
4
5
6 Cost of car
7
APR
8
Number of months
9 Compounding periods per year
10
11 (Use cells A6 to B9 from the given information to complete this question. Your payment should be a positive value.)
12
Input area:
13 Output area:
14
15 Payment
16 Effective interest rate
17
18
$84,500
4.70%
60
12
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