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

- 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 ...
- 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...
- Mathematics - I really need help with these three questions. Thank You. 1. ...
- Finance - 11. Loan Payments You wish to buy a $30,000 car. The dealer offers you...
- Math - Suppose you borrowed $25,000 for a car at an APR of 8%, which you are ...
- Finance - You have arranged for a loan on your new car that will require the ...

More Related Questions