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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You make a down payment of $1,500 to purchase a used car worth $5,500.00 cash price and finance the balance by making payments of $145.00 every month for 30 months. What nominal rate of interest, compounded monthly, is charged? O A) 7.07% B) 6.60% O C) 5.50% D) 6.80%
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
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