Problem 6-20 Calculating Loan Payments [LO2, 4]

You want to buy a new sports coupe for $86,500, and the finance office at the dealership has quoted you a 6.8 percent APR loan for 60 months to buy the car.

What will your monthly payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Monthly payment

$

What is the effective annual rate on this loan? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Effective annual rate

%