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You are still considering the car from Problem 1 ( $ 1 0 , 0 0 0 price, $ 8 , 0 0 0 loan

You are still considering the car from Problem 1($10,000 price, $8,000
loan) but the dealer also offers you an alternative amortized installment loan
for the same $8,000 amount, but with equal monthly payments of $140 over
7 years starting next month.
a. What is the present value of the promised payments on the loan
discounted at the quoted interest rate (expressed as a dollar amount
with two decimal places)?
b. What is the total number of payments you will make repaying the loan
(expressed as a whole number)?
c. What is the monthly compound periodic interest rate the dealer is
quoting you with this payment plan (expressed as a percentage with 3
decimal places)?
d. What is the APR with monthly compounding the dealer would quote
to you on this loan (expressed as a percentage with 2 decimal places)?

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