The bank officer is convincing a customer who is looking for a car loan. Compute the price the bank expects to receive for the loan if annual interest rate is 8%, the car payment is $350 per month, and the loan term is six years. You may convert the annual interest rate into monthly interest rate using the formula [monthly interest rate(im) = (1+i)1/12 – 1, where i is the annual interest rate]

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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1. The bank officer is convincing a customer who is looking for a car loan. Compute the price the bank expects to receive for the loan if annual interest rate is 8%, the car payment is $350 per month, and the loan term is six years.
You may convert the annual interest rate into monthly interest rate using the formula [monthly interest rate(im) = (1+i)1/12 – 1, where i is the annual interest rate].

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