Finance

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%

  1. πŸ‘ 0
  2. πŸ‘Ž 0
  3. πŸ‘ 208
asked by Antoinette
  1. 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?

    1. πŸ‘ 0
    2. πŸ‘Ž 0
    posted by Wendy

Respond to this Question

First Name

Your Response

Similar Questions

  1. Math

    You need to borrow $20,000 to buy a car. You can only afford to make monthly payments of $200. The bank offers 3 choices: 3-year loan at 5%, 4-year loan at 6%, and a 5-year loan at 7%. a) What’s the monthly payment for each

    asked by Emilio on February 21, 2016
  2. Finance

    You have arranged for a loan on your new car that will require the first payment today. The loan is for $32,000, and the monthly payments are $620. Required: If the loan will be paid off over the next 60 months, what is the APR of

    asked by Alec on February 19, 2014
  3. Finance

    you have contacted a number of dearlerships to determine the best interest rate on a new car loan, dealship quoted a 5 year, 10% loan in the amount of $35,000 that will require monthly payments. What is the monthly loan payment.

    asked by Miller on March 19, 2013
  4. Finance

    you have contacted a number of dearlerships to determine the best interest rate on a new car loan, dealship quoted a 5 year, 10% loan in the amount of $35,000 that will require monthly payments. What is the monthly loan payment.

    asked by Miller on March 19, 2013
  5. Finance

    you have contacted a number of dearlerships to determine the best interest rate on a new car loan, dealship quoted a 5 year, 10% loan in the amount of $35,000 that will require monthly payments. What is the monthly loan payment.

    asked by Miller on March 19, 2013
  6. Finance

    you have contacted a number of dearlerships to determine the best interest rate on a new car loan, dealship quoted a 5 year, 10% loan in the amount of $35,000 that will require monthly payments. What is the monthly loan payment.

    asked by Miller on March 19, 2013
  7. Finance

    11. Loan Payments You wish to buy a $30,000 car. The dealer offers you a 4-year loan with a 6 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such

    asked by Dashawn on October 13, 2014
  8. Finance

    Sheet Metals has an outstanding loan that calls for equal annual payments of $12,600.47 over the life of the loan. The original loan amount was $72,000 at an APR of 8.15 percent. How much of the third loan payment is interest?

    asked by Jen on February 5, 2017
  9. Math

    4. Vanna has just financed the purchase of a home for $200 000. She agreed to repay the loan by making equal monthly blended payments of $3000 each at 9%/a, compounded monthly. c. How long will it take to repay the loan? d. How

    asked by Michelle on January 17, 2011
  10. Finance

    You have arranged for a loan on your new car that will require the first payment today. The loan is for $38,500, and the monthly payments are $690. If the loan will be paid off over the next 69 months, what is the APR of the loan?

    asked by Ethan on July 20, 2018

More Similar Questions