You are considering the purchase of a Mercedes-Benz S-class for $103,100. Bank of America has quoted you a loan with an APR of 6.7 percent for 54 months to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Monthly payment b. Effective annual rate %
You are considering the purchase of a Mercedes-Benz S-class for $103,100. Bank of America has quoted you a loan with an APR of 6.7 percent for 54 months to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Monthly payment b. Effective annual rate %
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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vi.
Subject
Finance
Transcribed Image Text:You are considering the purchase of a Mercedes-Benz S-class for $103,100. Bank of
America has quoted you a loan with an APR of 6.7 percent for 54 months to buy the car.
a. What will your monthly payments be? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
b. What is the effective annual rate on this loan? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
a. Monthly payment
b. Effective annual rate
%
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