LO 4 45. Calculating Annuities Due Interest Rates. You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly payments are $465. If the loan will be paid off over the next 60 months, what is the APR of the loan? $13.500 m

LO 4 45. Calculating Annuities Due Interest Rates. You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly payments are $465. If the loan will be paid off over the next 60 months, what is the APR of the loan? $13.500 m

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 31P

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Question

5.45

▾
A
X ✓ fx
B
=RATE(D183,D181,-D182)
C
с
45.00
R
PMT
PV
N
LO 4
APR
EAR
withdraw each year.
45. Calculating Annuities Due Interest Rates. You have arranged for a loan on
your new car that will require the first payment today. The loan is for
$24,500, and the monthly payments are $465. If the loan will be paid off
over the next 60 months, what is the APR of the loan?
aina to receive $13.500 per
1
D
0.0044
465.00
24,500.00
60.00
0.0524
0.0536
E
5.24%
5.36%
F
G
H
(45)
CPT
Annuity Due
PV = 24,500
PMT = 465
t
= 60
=
r
0.005401
per period
X 12 periods per year
1.0648 x 100 =
७.48 = APR
5.42
Book ANSWER X
=

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