Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan?

Group of answer choices

8.90 percent
8.95 percent
9.00 percent
9.15 percent
9.20 percent

Solutions

Expert Solution

jeff jeffy answered 2 years ago

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