You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? Cost of Car 2$ 79,500 5.8% Discount rate # of years # of times compounded per year 5 12 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. Payment Effective interest rate

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
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You want to buy a new sports coupe for $79,500, and the finance office at the
dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the
car. What will your monthly payments be? What is the effective annual rate on this
loan?
Cost of Car
$
79,500
Discount rate
5.8%
# of years
# of times compounded per year
5
12
Complete the following analysis. Do not hard code values in your
calculations. All answers should be positive.
Payment
Effective interest rate
Transcribed Image Text:You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? Cost of Car $ 79,500 Discount rate 5.8% # of years # of times compounded per year 5 12 Complete the following analysis. Do not hard code values in your calculations. All answers should be positive. Payment Effective interest rate
All answers must be entered as a
formula.
Click OK to begin.
OK
Transcribed Image Text:All answers must be entered as a formula. Click OK to begin. OK
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