If a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down. If you can get a similar loan from a bank at APR of 12%, what is the price that you're paying? Down payment Monthly payment Loan period APR months No. of compounding times per year Monthly rate Present Value Book formula Excel function If you take out an $10,000 car loan that call for 60 monthly payments at an APR of 12%, what is your monthly payment? What is the EAR? PV of loan Loan period months APR No. of compounding Monthly rate Monthly payment Book formula Excel function EAR times per year

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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If a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down.
If you can get a similar loan from a bank at APR of 12%, what is the price that you're paying?
Down payment
Monthly payment
Loan period
APR
months
No. of compounding
times per year
Monthly rate
Present Value
Book formula
Excel function
If you take out an $10,000 car loan that call for 60 monthly payments at
an APR of 12%, what is your monthly payment? What is the EAR?
PV of loan
Loan period
months
APR
No. of compounding
Monthly rate
Monthly payment
Book formula
Excel function
EAR
times per year
Transcribed Image Text:If a dealer offers you a car at $275 monthly payment for 5 years plus $5,000 down. If you can get a similar loan from a bank at APR of 12%, what is the price that you're paying? Down payment Monthly payment Loan period APR months No. of compounding times per year Monthly rate Present Value Book formula Excel function If you take out an $10,000 car loan that call for 60 monthly payments at an APR of 12%, what is your monthly payment? What is the EAR? PV of loan Loan period months APR No. of compounding Monthly rate Monthly payment Book formula Excel function EAR times per year
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Given information:

Down payment amount is $5,000

Monthly payment us $275

APR is 12%

Number of years is 5

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