You are planning to purchase a new Rolex Daytona watch that costs $16,900 excluding taxes. The sales tax in Miami-Dade county is 7%. To finance this extravagant purchase,

you have been offered a five-year loan that requires 0% downpayment and

is to be repaid in equal monthly installments. The APR of the loan is 12%.

Compute the EAR and the amount of your periodic payment on the loan.

To get full credit, you need to find the amount of the monthly payment in two different ways:

1) using the built-in Excel function

2) using the annuity formula