Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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 monthly payments beginning today then what will be your approximate monthly installment?
Group of answer choices
$170.43
$154.31
$160.31
$171.45
Expert Solution
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Step 1
A study that proves that the future worth of the money is lower than its current value due to several factors is term as the TVM (time value of money).
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