Ray Flagg took out a 60-month fixed installment loan of $12,000 to open a new pet store. He paid no money down and began making monthly payments of $221. Ray's business does better than expected and instead of making his 30th payment, Ray wishes to repay his loan in full. Complete parts a) through c).
Ray Flagg took out a 60-month fixed installment loan of $12,000 to open a new pet store. He paid no money down and began making monthly payments of $221. Ray's business does better than expected and instead of making his 30th payment, Ray wishes to repay his loan in full. Complete parts a) through c).
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
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Transcribed Image Text:Ray Flagg took out a 60-month fixed installment loan of $12,000 to open a new pet
store. He paid no money down and began making monthly payments of $221. Ray's
business does better than expected and instead of making his 30th payment, Ray
wishes to repay his loan in full. Complete parts a) through c).
Click the icon to view the table of interest rates.
a) Determine the APR of the installment loan.
APR= %
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