You are looking to buy a car that costs $30,000. Your payment is $400/month for 60 months. If you want to know your interest rate on this loan, you can use Excel. Excel returns a RATE of 0.70%. What is your APR? 8.45% 2.75% 3.24% 0.70%
You are looking to buy a car that costs $30,000. Your payment is $400/month for 60 months. If you want to know your interest rate on this loan, you can use Excel. Excel returns a RATE of 0.70%. What is your APR? 8.45% 2.75% 3.24% 0.70%
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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You are looking to buy a car that costs $30,000. Your payment is $400/month for 60 months. If you want to know your interest rate on this loan, you can use Excel. Excel returns a RATE of 0.70%. What is your APR?
8.45%
2.75%
3.24%
0.70%
Expert Solution
Given,
Car Costs = $30,000
Time Period = 60 Months
Monthly Payment = $400
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