You want to buy a $20,000 vehicle and if you finance it through the bank, the...

You want to buy a $20,000 vehicle and if you finance it through the bank, the five-year financing comes to $462.12 per month. What are the annual nominal and effective interest rates your bank charges if you know that the bank applies a daily compounding?

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jeff jeffy answered 2 years ago

You want to buy a car, and a local bank will lend you $20,000.The loan...

You want to buy a car, and a local bank will lend you $20,000. The loan will be paid off over 5 years with equal monthly payment.a) If the nominal interest rate of the loan is quoted as 6% with monthly compounding assumption, what is your monthly payment?b)What is the effective annual rate of Part(1)?c) If the nominal interest rate of the loan is quoted as 6% with semiannual compounding assumption, what is your monthly payment?

You want to buy a car, and a local bank will lend you $20,000. The loan...

You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. a)What would be the monthly loan payment? b)What would be the loan’s EAR? c) If the nominal interest rate of the loan is quoted as 12% with semiannual compounding assumption, what is your monthly payment?

You plan to buy a home for 203 thousand dollars. The bank you want to finance...

You plan to buy a home for 203 thousand dollars. The bank you want to finance the loan with suggests a 20-year mortgage at 6% APR. What would be the monthly mortgage payment? Use semiannual compounding, and provide the answer in dollars

You want to buy a new sports coupe for $26,500 and the finance office at the...

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a. You want to buy a car, and a local bank will lend you$30,000. The...

a. You want to buy a car, and a local bank will lend you $30,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.Monthly loan payment: $ EAR:b. What is...

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a. You want to invest $20,000 and are looking for safe investment options. Your bank is offering a certificate of deposit that pays a nominal rate of 8.00% that is compounded quarterly. Your effective rate of return on this investment is .? b.Suppose you decide to deposit $20,000 into a savings account that pays a nominal rate of 10.40%, but interest is compounded daily. Based on a 365-day year, how much would you have in your account after 12 months?...

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You are planning to buy a house appraised for $350,000 and finance it through a mortgage of $300,000. What is the loan-to-value ratio and is it be above or below the normal cutoff set by your lender of 80 percent for a prime mortgage? Being securely employed, your take-home pay is $2,300 per month and you have no substantial other debts. Your lender has offered you a 2.5 percent, 30 year, fixed-rate mortgage. What is the amount that you will...

You want to buy a car, and a local bank will lend you $10,000.The loan...

You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.

You want to buy a car, and a local bank will lend you $25,000.The loan...

You want to buy a car, and a local bank will lend you $25,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 5% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places.Monthly loan payment: $EAR: %Find the following...

You want to buy a car, and a local bank will lend you $15,000. The loan...

You want to buy a car, and a local bank will lend you $15,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 8% with interest paid monthly. What will be the monthly loan payment? What will be the loan's EAR? Do not round intermediate calculations. Round your answer for the monthly loan payment to the nearest cent and for EAR to two decimal places. Monthly loan payment: $ EAR: %

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