In: Finance
Amortization schedule with periodic
payments.
Moulton Motors is advertising the following deal on a new Honda Civic: "Monthly payments of
$400.40400.40
for the next
6060
months and this beauty can be yours!" The sticker price of the car is
$ 18 comma 000$18,000.
If you bought the car, what interest rate would you be paying in both APR and EAR terms? What is the amortization schedule of the first six payments?
If you bought the car, what monthly interest rate would you be paying?
(Round to four decimal places.)
Hence, Monthly interest rate is 1.0000%
APR is 12.00% (1.0000%*12)
EAR is 12.68% [(1+1.0000%)^12-1]
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