Please workout all parts, without excel if possible. Thank you. You Have your eyes on a new automobile costing $35,000. If you had the $35,000 and wrote a check for that amount, you could drive the car home. However, you don't have it, so you pay $5,000 down and finance $30,000 though the dealer at a rate of 6% compounded monthly.

amout have your eyes on a new automobile costing $35,000. If you had the $35K and wrote a check for that ount, you could drive the car home. However $30,000 throug closeout fee of another $250. prepaid loan maintenance fee of 'only $8/mo, or $480 ...you don't have it, so you pay $5000 down and finance h the dealer at a rate of 6% compounded monthly. The dealer requires monthly payments over 5 years. The dealer then proceeds to add on a 1.25% loan initiation fee of $375. Also, they have a pre adl an Then, there is another paperwork filing and storage fee of another $100, and a int, the salesman is talking very fast and assures you that these small required' amounts can be rolled into your loan. They fioure your monsthy pagment as A = $31,205.(NP 112, 60) = $602.26 a) What is the effective monthly rate of interest you are really paying for this loan? (Hint! What is the car worth? Find the interest rate that makes 60 payments of $602.26 equivalent to the car's worth-Excel b) c) will be helpful.... What is the nominal annual rate? What is the effective annual interest rate you are really paying