You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted you an APR of 5.9 percent for a 48-month loan to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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 $77,500, and the finance office at the dealership
has quoted you an APR of 5.9 percent for a 48-month loan to buy the car.
a. What will your monthly payments be? (Do not round intermediate calculations and
round your answer to 2 decimal places, e.g., 32.16.)
b. What is the effective annual rate on this loan? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
a. Monthly payment
b. Effective annual rate
%
Transcribed Image Text:You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted you an APR of 5.9 percent for a 48-month loan to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Monthly payment b. Effective annual rate %
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