You take out an $8,900 car loan that calls for 48 monthly payments starting after 1 month at an APR of 6%. a. What is your monthly payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. 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. c. Now assume the payments are made in four annual year-end installments. What annual payment would have the same present value as the monthly payment you calculated? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Monthly payment b. Effective annual interest rate c. Annual payment $ 568.69 %
You take out an $8,900 car loan that calls for 48 monthly payments starting after 1 month at an APR of 6%. a. What is your monthly payment? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. 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. c. Now assume the payments are made in four annual year-end installments. What annual payment would have the same present value as the monthly payment you calculated? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Monthly payment b. Effective annual interest rate c. Annual payment $ 568.69 %
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
Related questions
Question
![You take out an $8,900 car loan that calls for 48 monthly payments starting after 1 month at an
APR of 6%.
a. What is your monthly payment?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. 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.
c. Now assume the payments are made in four annual year-end installments. What annual
payment would have the same present value as the monthly payment you calculated?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
a. Monthly payment
b. Effective annual interest rate
c. Annual payment
$
568.69
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f0859e7-177f-4240-afbd-ef50c8003c62%2F60fad301-608f-44ee-b3f9-b5bbba54b1a2%2F3111tj8_processed.png&w=3840&q=75)
Transcribed Image Text:You take out an $8,900 car loan that calls for 48 monthly payments starting after 1 month at an
APR of 6%.
a. What is your monthly payment?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. 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.
c. Now assume the payments are made in four annual year-end installments. What annual
payment would have the same present value as the monthly payment you calculated?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
a. Monthly payment
b. Effective annual interest rate
c. Annual payment
$
568.69
%
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