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4. You want to buy a new sports car that costs $86,500, and the finance office at the dealership has quoted you a 4.9% APR loan for 60 months to buy the car with a $2,000 down payment (th is, you pay $2,000 initially and borrow the rest). What will your monthly payments be? What is the effective annual rate (EAR) on this loan?

4. You want to buy a new sports car that costs $86,500, and the finance office at the dealership has quoted you a 4.9% APR loan for 60 months to buy the car with a $2,000 down payment (th is, you pay $2,000 initially and borrow the rest). What will your monthly payments be? What is the effective annual rate (EAR) on this loan?

Essentials Of Investments
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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plz solve question 4 asap
3. An investment pays $7,000 per year forever, with the first payment occurring 15 years from now. If the appropriate annual discount rate is 6.5%, what is the investment worth today? 4. You want to buy a new sports car that costs $86,500, and the finance office at the dealership has quoted you a 4.9% APR loan for 60 months to buy the car with a $2,000 down payment (tha is, you pay $2,000 initially and borrow the rest). What will your monthly payments be? What is the effective annual rate (EAR) on this loan? Monthly pmt= EAR =
Transcribed Image Text:3. An investment pays $7,000 per year forever, with the first payment occurring 15 years from now. If the appropriate annual discount rate is 6.5%, what is the investment worth today? 4. You want to buy a new sports car that costs $86,500, and the finance office at the dealership has quoted you a 4.9% APR loan for 60 months to buy the car with a $2,000 down payment (tha is, you pay $2,000 initially and borrow the rest). What will your monthly payments be? What is the effective annual rate (EAR) on this loan? Monthly pmt= EAR =
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