Question
Problem 5-8 Loan amortization and EAR You want to buy a car, and a local bank will lend you $30,000. 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 $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% 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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Financial Management Principles And Applications
Authors: J William Petty, Sheridan Titman, Arthur J Keown, John D Martin, Peter Martin, Michael Burrow, Hoa Nguyen
6th Edition
1442539178, 9781442539174
