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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 $ price, $
loan but the dealer also offers you an alternative amortized installment loan
for the same $ amount, but with equal monthly payments of $ over
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
decimal places
d What is the APR with monthly compounding the dealer would quote
to you on this loan expressed as a percentage with decimal places
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