You take out a $9,000 car loan that calls for 36 monthly payments starting after 1 month at an APR of 9%. What is your monthly payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Now assume the payments are made in three annual year-end installments. What annual payment would have the same present value as the monthly payment you calculated? Note: Do not round in
You take out a $9,000 car loan that calls for 36 monthly payments starting after 1 month at an APR of 9%. What is your monthly payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. What is the effective annual interest rate on the loan? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Now assume the payments are made in three annual year-end installments. What annual payment would have the same present value as the monthly payment you calculated? Note: Do not round in
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 9FPE: Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five...
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You take out a $9,000 car loan that calls for 36 monthly payments starting after 1 month at an APR of 9%.
What is your monthly payment?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
What is the effective annual interest rate on the loan?
Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Now assume the payments are made in three annual year-end installments. What annual payment would have the same
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
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