Question
1. You wish to buy a $22,500 car. The dealer offers you a 4-year loan with a 10 percent APR. What are the monthly payments?
| 1. You wish to buy a $22,500 car. The dealer offers you a 4-year loan with a 10 percent APR. What are the monthly payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Payment | $ per month |
| How would the payment differ if you paid interest only? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Payment | $ per month |
| 2. You wish to buy a $10,500 dining room set. The furniture store offers you a 2-year loan with an 10 percent APR. What are the monthly payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Payment | $ per month |
| How would the payment differ if you paid interest only? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Payment | $ per month |
| 3. You are looking to buy a car. You can afford $660 in monthly payments for five years. In addition to the loan, you can make a $760 down payment. If interest rates are 8.25 percent APR, what price of car can you afford? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Present value | $ |
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Fundamentals Of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
3rd Edition
0321541642, 9780321541642
