BMW will sell a $55,000 car for $890 per month for 72 months. What is the annual interest rate? Hint: Excel will help you to calculate the monthly interest rate if you enter 72 as the number of periods. So, you need to multiply that monthly interest rate by 12 to get the annual interest rate. 3.31% b. 7.15% c. 4.12% d. 2.43% e. 5.17% a.
BMW will sell a $55,000 car for $890 per month for 72 months. What is the annual interest rate? Hint: Excel will help you to calculate the monthly interest rate if you enter 72 as the number of periods. So, you need to multiply that monthly interest rate by 12 to get the annual interest rate. 3.31% b. 7.15% c. 4.12% d. 2.43% e. 5.17% a.
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:BMW will sell a $55,000 car for $890 per month for 72 months.
What is the annual interest rate?
Hint: Excel will help you to calculate the monthly interest rate if you enter
72 as the number of periods. So, you need to multiply that monthly
interest rate by 12 to get the annual interest rate.
a.
3.31%
O b. 7.15%
C. 4.12%
d. 2.43%
e. 5.17%
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