You want to buy a new sports coupe for $73,900, and the finance office at the de

ID: 2705197 • Letter: Y

Question

You want to buy a new sports coupe for $73,900, and the finance office at the dealership has quoted you a loan with an APR of 6.3 percent for 72 months to buy the car.

What will your monthly payments be? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

What is the effective annual rate on this loan? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Requirement 1:

What will your monthly payments be? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Explanation / Answer

monthly rate = 6.3/12 = 0.525

let monthly payment be A

73900 = A/0.00525* [1-1(1.00525)^72]

A=1235.22

effective annual rate = r

(1+r) = (1+0.00525)^12

so r = 6.485%

Navigate

You want to buy a new sports coupe for $73,900, and the finance office at the de

You want to buy a new sports coupe for $74,200, and the finance office at the de

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.

You want to buy a new sports coupe for $73,900, and the finance office at the de

Question

Explanation / Answer

Related Questions

Navigate