Question
Some help with this Finance homework problem would be very much appreciated, thanks! 1. A young graduate is planning on buying a new car in
Some help with this Finance homework problem would be very much appreciated, thanks!
1. A young graduate is planning on buying a new car in three years. The car the young graduate wants is a BMW 3-Series that will cost $50,000 in three years. To pay for the car, the graduate will invest $500 each month in a money market fund (Beginning TODAY!). The fund will pay 4.8% annually with monthly compounding. The other source of funding for the car will come from a bank loan that the graduate will take out from the local bank the day he purchases the car. The graduate believes he can get a 60-month bank loan at a rate of 6.0% APR. To buy the BMW, what monthly payments will the graduate make on the car loan? (Loan payments will be made at the END of the month)
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