LO 4 45. Calculating Annuities Due Interest Rates. You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly payments are $465. If the loan will be paid off over the next 60 months, what is the APR of the loan? $13.500 m

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
icon
Related questions
Question

5.45

▾
A
X ✓ fx
B
=RATE(D183,D181,-D182)
C
с
45.00
R
PMT
PV
N
LO 4
APR
EAR
withdraw each year.
45. Calculating Annuities Due Interest Rates. You have arranged for a loan on
your new car that will require the first payment today. The loan is for
$24,500, and the monthly payments are $465. If the loan will be paid off
over the next 60 months, what is the APR of the loan?
aina to receive $13.500 per
1
D
0.0044
465.00
24,500.00
60.00
0.0524
0.0536
E
5.24%
5.36%
F
G
H
(45)
CPT
Annuity Due
PV = 24,500
PMT = 465
t
= 60
=
r
0.005401
per period
X 12 periods per year
1.0648 x 100 =
७.48 = APR
5.42
Book ANSWER X
=
Transcribed Image Text:▾ A X ✓ fx B =RATE(D183,D181,-D182) C с 45.00 R PMT PV N LO 4 APR EAR withdraw each year. 45. Calculating Annuities Due Interest Rates. You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly payments are $465. If the loan will be paid off over the next 60 months, what is the APR of the loan? aina to receive $13.500 per 1 D 0.0044 465.00 24,500.00 60.00 0.0524 0.0536 E 5.24% 5.36% F G H (45) CPT Annuity Due PV = 24,500 PMT = 465 t = 60 = r 0.005401 per period X 12 periods per year 1.0648 x 100 = ७.48 = APR 5.42 Book ANSWER X =
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Banking and Financial Services
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education