KThe ad for a 4-door sedan claims that amonthly payment of $299 constitutes 0%financing. Explain why that is false. Find theannual interest rate compounded monthly thatis actually being charged for financing $17,495with 60 monthly payments of $299.NEW 4-DOOR SEDAN!Zero down-0% financing$299 per monthBuy for $17,495.The advertisement is false, because for 0% financing, the monthly payments should be $ 291.58, not $299.(Round to the nearest cent as needed.)If a loan of $17,495 is amortized in 60 payments of $299, the annual interest rate is %, compounded monthly(Round to the nearest hundredth as needed.)

1)Monthly Payment Given, it's is a 0% financing So, Monthly payment = Total Value /Number of months…

Answered: K The ad for a 4-door sedan claims that…

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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es Little Kimi Clothiers can borrow from its bank at 20 percent to take a cash discount. The terms of the cash discount are 3/25 net 85. a. Compute the cost of not taking the cash discount. (Use 365 days in a year. Do not round the intermediate calculations. Round the final answer to 2 decimal places.) Cost of not taking a cash discount b. Should the firm borrow the funds? % 00 Yes O No
5.12 You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have a 10% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent.$ What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent.$
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2a. You decide to purchase a new touchscreen Chromebook. The price is listed at $499.99 but the salesperson tells you that everything in the store is 25% off today. What is the total price that you pay for the Chromebook (including 8% Tax)? 2b. You decide to take advantage of the store's payment plan. The payment plan's terms are as follows: 18 equal monthly payments, 6% interest, compounded monthly. a) What is the total cost that you will end up paying for
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For the car loan described, give the following information. A newspaper advertisement offers a $9,000 for nothing down and 36 monthly payments of $332.50. a. amount to be paid $11,970.00 b. amount of interest $2,970.00 c. interest rate 11% d. APR (rounded to the nearest tenth percent). I tried this part of the problem and it's not 5.8 or 5.9%. It's still wrong. What is the APR?

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