Need help You want to buy a new sports coupe for $75,600,and the finance office at the dealership has quotedyou a loan with an APR of 8 percent for 48 monthsto buy the car.1. What will your monthly payments be?2. What is the effective annual rate on this loan?

To calculate the monthly payments and the effective annual rate (EAR), let's break it down into two…

Answered: You want to buy a new sports coupe for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You want to buy a new sports coupe for $74400 and the finance office at the dealership has quoted you a loan with an APR of 6.8 percent for 48 months to buy the car. a.What will your monthly payments be? b. What is the effective annual rate of this loan?
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You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an APR of 5.2 percent for a 60-month loan to buy the car. a. What will your monthly payments be? b. what is the effective annual rate of this loan
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You want to buy a car, and a local bank will lend you $33,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 13%, with interest paid monthly. What is the monthly loan payment? What is the loan’s EFF%?
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(Use Formula Approach or Calculator Approach) Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month for 60 months. What is the monthly interest rate?

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You want to buy a new sports coupe for $75,600, and the finance office at the dealership has quoted you a loan with an APR of 8 percent for 48 months to buy the car. 1. What will your monthly payments be? 2. What is the effective annual rate on this loan?