Convert the credit card rate to the APR. (Round your answer to the nearest percent.)Nebraska, 0.04084% daily rate%??Find the APR (rounded to the nearest tenth of a percent) for the loan described below.Purchase a living room set for $3,600 at11% add-on interest for 3 years.%?Find the APR (rounded to the nearest tenth of a percent) for the loan described below.Purchase a refrigerator for $1,500 at 13% add-on interest for 3 years.%?(a) Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).A BMW that has a sticker price of $62,520 with factory and dealer rebates of $6,000$?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 youranswer to one decimal place.)%?(d) State whether the 0% APR or the 2.5% add-on rate should be preferred.

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Convert the credit card rate to the APR. (Round your answer to the nearest percent.) Nebraska, 0.04084% daily rate %??

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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Concept explainers

Credit card

A credit card is provided by financial institutions or banks, which permits a person to borrow money on a preapproved limit for purchases on a credit basis. The credit limit is decided by the institution and bank which issues a credit card depending on the person’s credit score and income. A cardholder can use the card for credit purchases, a balance transfer, cash advances.

Question

Convert the credit card rate to the APR. (Round your answer to the nearest percent.)
Nebraska, 0.04084% daily rate
%??
Find the APR (rounded to the nearest tenth of a percent) for the loan described below.
Purchase a living room set for $3,600 at11% add-on interest for 3 years.
%?
Find the APR (rounded to the nearest tenth of a percent) for the loan described below.
Purchase a refrigerator for $1,500 at 13% add-on interest for 3 years.
%?
(a) Assume the car can be purchased for 0% down for 60 months (in lieu of rebate).
A BMW that has a sticker price of $62,520 with factory and dealer rebates of $6,000
$?
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.

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