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You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted you an APR of 5.9 percent
You want to buy a new sports coupe for $77,500, and the finance office at the dealership has quoted you an APR of 5.9 percent for a 48-month loan to buy the car. a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate on this loan? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of 6 percent per year, compounded monthly for the first six months, increasing thereafter to 17.5 percent compounded monthly. Assume you transfer the $6,500 balance from your existing credit card and make no subsequent payments. How much interest will you owe at the end of the first year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Suppose an investment offers to quintuple your money in 30 months (don't believe it). What rate of return per quarter are you being offered? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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