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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text: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?
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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?arrow_forwardNeed answer pleasearrow_forwardYou 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 loanarrow_forward
- Provide Solutionsarrow_forwardSolve this questionarrow_forwardYou want to buy a car with a local bank that will lend you $20000. The loan will fully amortized over 5 years and the nominal rate of interest will be 14% with interest paid monthly, then a. What will be your monthly payment? b. Effective Annual Rate? c. Explain why total interest is different?arrow_forward
- 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%?arrow_forwardYou want to buy a new sports coupe for $64,987, and the finance office at the dealership has quoted you a loan with an APR of 8.99 percent for 55 months to buy the car. What will your monthly payments (in $) be? Answer to two decimals.arrow_forwardYou want to buy a car. The loan amount will be $28,000.00. A bank is offering a 5% interest rate for 36 months (3 years). What will your monthly payments be? My monthly payment will be $_______arrow_forward
- Suppose you borrow $21,000 from your bank to buy a car. You agree to pay $433.89 per month for 60 months. What is the interest rate (APR) for the loan?arrow_forward(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?arrow_forwardCalculating Loan Payments You want to buy a new sports coupe for $69,300, and the finance office at the dealership has quoted you a loan with an APR of 5.6 percent for 48 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?arrow_forward
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