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%

- Finance -
**Wendy**, Thursday, October 18, 2007 at 5:32pm
An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100.

a. What is the current yield on the bond?

b. What is the yield to maturity?

## Answer This Question

## Related Questions

- mathematics - The monthly loan payment was calculated at 119 payments of $330.38...
- Math - The monthly loan payment was calculated at 119 payments of $348.33 plus a...
- 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 - 11. Loan Payments You wish to buy a $30,000 car. The dealer offers you...
- Mathematics - I really need help with these three questions. Thank You. 1. ...
- Please Help me with a Finance - Loan problem - A company borrows $170000, which ...
- Finance - Loans problem please help - A company borrows $170000, which will be ...

More Related Questions