Friday
October 24, 2014

Homework Help: Finance

Posted by Antoinette on Sunday, March 18, 2007 at 11:47pm.

Loan Payments - If you take out an $8,000 car loan that calls for 48 monthly payments APR of 10 percent, what is your monthly payment? What is the effecgive annual interest rate on the loan?

the montly rate is 0.10/12=.0083333...

then 8000= payment[1-(1.0083333)^-48]/0.00833333

solving this I got payment = 202.90

let the annual rate be j

then (1+j)^1=1.00833333^12
1+j=1.1047131
j=0.1047..
or the effective rate is 10.47%

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

mathematics - The monthly loan payment was calculated at 119 payments of $330.38...
Finance - You have arranged for a loan on your new car that will require the ...
Maths - Firm has a $500,000 loan with 9% APR (compounded monthly) Loan is 5-yr ...
Finance - You take out a 30-year $100,000 mortgage loan with an APR of 6 percent...
Finance - you have contacted a number of dearlerships to determine the best ...
Finance - you have contacted a number of dearlerships to determine the best ...
Finance - you have contacted a number of dearlerships to determine the best ...
Finance - you have contacted a number of dearlerships to determine the best ...
finance - For a $13,000 student loan with a 6% APR, how much of the payment will...
Mathematics - I really need help with these three questions. Thank You. 1. ...

Search
Members