Question
Problem 5-8 Loan amortization and EAR You want to buy a car, and a local bank will lend you $10,000. The loan will be fully
Problem 5-8 Loan amortization and EAR
You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12% with interest paid monthly.
- What will be the monthly loan payment? Round your answer to the nearest cent.$
- What will be the loan's EAR? Round your answer to two decimal places.%
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
