You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal end-of-month payments then what will be your approximate monthly installment? Group of answer choices $160.31 $154.31 $171.45 $170.43
You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal end-of-month payments then what will be your approximate monthly installment? Group of answer choices $160.31 $154.31 $171.45 $170.43
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 want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal end-of-month payments then what will be your approximate monthly installment?
Group of answer choices
$160.31
$154.31
$171.45
$170.43
Expert Solution
Step 1
Monthly Payment: It is the amount that is paid at the end of each month to the lender of the bond by the borrower. It is the payment made by a borrower to discharge the liabilities. Example: Mortgage Loan. When monthly payments are equal for each month then it is termed as equated monthly installments or EMIs.
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