You want to borrow $87,000 from your local bank to buy a new sailboat. You can affore to make monthly payments of $1,550, but no more. Assuming monthly compounding what is the highest rate you can afford on a 72-month APR loan? (Do not rounc intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 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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Problem 6-41 Calculating Annuity Present Values [LO2]
You want to borrow $87,000 from your local bank to buy a new sailboat. You can afford
to make monthly payments of $1,550, but no more. Assuming monthly compounding.
what is the highest rate you can afford on a 72-month APR loan? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Interest rate
%
Transcribed Image Text:Problem 6-41 Calculating Annuity Present Values [LO2] You want to borrow $87,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,550, but no more. Assuming monthly compounding. what is the highest rate you can afford on a 72-month APR loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Interest rate %
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