Question
1.) You are looking to buy a car and you have been offered a loan with an APR of 6%?, compounded monthly. a. What is
1.) You are looking to buy a car and you have been offered a loan with an APR of 6%?, compounded monthly.
a. What is the true monthly rate of? interest?
b. What is the? EAR?
2.) You have found three investment choices for a? one-year deposit: 10.0% APR compounded? monthly,10.0% APR compounded? annually, and 9.0% APR compounded daily. Compute the EAR for each investment choice.? (Assume that there are 365 days in the? year.) ?(Note: Be careful not to round any intermediate steps less than six decimal? places.)
The EAR for the first investment choice is: ______
3.) Suppose Capital One is advertising a 60?-month, 5.99% APR motorcycle loan. If you need to borrow $8,000 to purchase your dream? Harley-Davidson, what will be your monthly? payment?? (Note: Be careful not to round any intermediate steps less than six decimal? places.)
Your monthly payment will be ______
4.) Suppose Oppenheimer Bank is offering a? 30-year mortgage with an EAR of 6.800%. If you plan to borrow $150,000?,
what will be your monthly? payment? ?(Note: Be careful not to round any intermediate steps less than six decimal? places.)
Your monthly payment will be _________
5.) You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356and you have made every payment on time. The original term of the mortgage was 30? years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 6.375% ?(APR). How much do you owe on the mortgage? today? ?(Note: Be careful not to round any intermediate steps less than six decimal? places.)
The amount you owe today is _________
?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started