Question
Adam has just purchased a car for $23,000. The monthly payments are $394.37 based on 4.8 percent APR compounded monthly. Adam borrowed 21,000 and will
Adam has just purchased a car for $23,000. The monthly payments are $394.37 based on 4.8 percent APR compounded monthly. Adam borrowed 21,000 and will pay this car loan in 5 years with equal monthly installments. What is effective interest rate (EFF) does Adam pay for this loan annually?
|
| 4.917 % |
|
| 1.717 % |
|
| 4.907 % |
|
| 4.8 % |
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
