You have arranged for a loan on your new car that will require the first payment...

You have arranged for a loan on your new car that will require the first payment today. The loan is for $35,000, and the monthly payments are $655.

If the loan will be paid off over the next 62 months, what is the APR of the loan?

APR

3.12selected answer incorrect

%

Expert Solution

Using a financial calculator

Set the mode to BGN mode => 2nd BGN => 2nd SET => 2nd QUIT

PV = -35000

FV = 0

PMT = 655

N = 62

cpt I/Y, we get I/Y= 0.50183

Hence, the APR = 12*0.50183

APR = 6.02196% = 6.02%

jeff jeffy answered 3 years ago

PV AND LOAN ELIGIBILITY You have saved $5,000 for a down payment on a new car....

PV AND LOAN ELIGIBILITY You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60...

Suppose you are buying the first house for $500,000 with 20% down payment. You have arranged...

Suppose you are buying the first house for $500,000 with 20% down payment. You have arranged to finance the remaining amount with a 15-year, monthly payment, amortized mortgage at nominal annual rate of 3.6%. What is remaining balance after 10 years with 120 monthly payments? $180,68.90 $79,777.39 $167,123.45 $157,881.37 Which of the following statements is/are INCORRECT? Unlimited liability and limited life are two key advantages of the corporate form over other forms of busiess organizations. Limited liability is an advantage...

You have saved $3,000 for a down payment on a new car. The largest monthly payment...

You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $500. The loan will have a 11% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60 months? Do not round...

You have saved $4,000 for a down payment on a new car. The largest monthly payment...

You have saved $4,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 9% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60 months? Do not round...

You have saved $5,000 for a down payment on a new car. The largest monthly payment...

You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 6% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $ Financed for 60 months: $ Find the present values of the following...

1.Assume you have just arranged a loan from your bank in the amount of $10,000. The...

1.Assume you have just arranged a loan from your bank in the amount of $10,000. The bank will allow you to repay the loan with a lump sum payment of $11,500 in two years. No other payments will be made during this period. What is the implied EAR of this lending arrangement? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit the % sign in your response. For example, an answer of 15.39% should be...

You have a car loan that requires monthly payments of $300 for the first year and...

You have a car loan that requires monthly payments of $300 for the first year and $500 per month during the second year. The annual rate on the loan is 12% and payments begin in one month. What is the present value?

You have saved $10,000 for a down payment on the purchase of a new car, however,...

You have saved $10,000 for a down payment on the purchase of a new car, however, since you plan to buy the car one year from today, you need to decide how to invest the money for one year. You are limited to one of two choices: 1. A Bond Fund with an expected return of 3%/year 2. A Stock Fund with an expected return of 7%/year. Which fund is best? Explain why!

a. You have saved $5,000 for a down payment on a new car. The largest monthly...

a. You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? For 60 months? Do not round intermediate calculations. Round your answers to the nearest cent. Financed for 48 months: $ Financed for 60 months: $ Bank A pays 6% interest compounded...

Problen 6.70. The marker on your new car indicates that you have already run the first...

Problen 6.70. The marker on your new car indicates that you have already run the first 3,000 miles, at which point the manufacturer recommends a general overhaul. You take your car to a recognized garage and request a review. Upon arrival in the garage there are 8 mechanics available, two of which are new. For a new mechanic, the time it takes to perform the overhaul is a random variable that follows a normal distribution with an expected value of...

Question