Suppose that you borrow $17,000 for three years at 8% toward the purchase of a car. Use PMT= The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) 1₁-1₁- -nt to find the monthly payments and the total interest for the loan.

Suppose that you borrow $17,000 for three years at 8% toward the purchase of a car. Use PMT= The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) 1₁-1₁- -nt to find the monthly payments and the total interest for the loan.

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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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Suppose that you borrow $17,000 for three years at 8% toward the purchase of a car. Use PMT=
PA
[---]
-nt
The monthly payment is $
(Do not round until the final answer. Then round to the nearest cent as needed.)
to find the monthly payments and the total interest for the loan.

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You want to buy a car and have negotiated a sale price of $50,000. You can get a loan from your local bank at a rate of 6% annually for 6 years. What is your MONTHLY payment? Reference the below formulas when solving the problem above: PV = FV / (1+r)^t FV = PV(1+r)^t FVA = PMT(((1+r)^t) -1) / r FVA = PMT((1+(r/12)^t(12))-1)/(r/12) PVA = PMT(((1-(1+r)^-t) / r)) PVA = PMT((1-(1+(r/12))^-t(12)))/(r/12)
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