Monthly payment-what is the effective annual rate on loan

Assignment Help Financial Management
Reference no: EM131010358

You want to buy a new sports coupe for $75,500, and the finance office at the dealership has quoted you an APR of 5.7 percent for a 60 month loan to buy the car. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Monthly payment $ What is the effective annual rate on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate %

Reference no: EM131010358

Questions Cloud

Explain the options for receiving the money : Most states have turned to the lottery to raise money for education and other state financing needs. Determine the largest payout for the state of North Carolina. Explain the options for receiving the money and select the method you would choose. Pro..
What is annualized lease rate for each maturity : The current price of oil is $32.00 per barrel. Forward prices for 3, 6, 9, and 12 months are $31.37, $30.75, $30.14 and $29.54. Assuming 2% compounded annual risk-free rate, what is annualized lease rate for each maturity? Is this an example of conta..
Calculate the annual cash flow of each : For each of the following annuities, calculate the annual cash flow. (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Calculate the annual cash flow of each?
What is the future value at a discount rate : Cannonier, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,060 2 1,290 3 1,510 4 2,250 If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? (Do not round intermediat..
Monthly payment-what is the effective annual rate on loan : You want to buy a new sports coupe for $75,500, and the finance office at the dealership has quoted you an APR of 5.7 percent for a 60 month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?
Stated rate number of times compounded effective rate : Find the EAR in each of the following cases (Use 365 days a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 8...
Savings accounts-future value : Fowler Credit Bank is offering 6.6 percent compounded daily on its savings accounts. You deposit $5,000 today. How much will you have in the account in 4 years? Future value $ How much will you have in the account in 12 years? Future value $ How much..
What happens to value of your investment if interest rate : Suppose you just bought a 25-year annuity of $7,200 per year at the current interest rate of 9 percent per year. What is the value of your annuity today? Present value $ What if interest rates suddenly rise to 14 percent? Present value $ What happens..
Prepare an amortization schedule for a five-year loan : Prepare an amortization schedule for a five-year loan of $69,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. Interest paid $ How much total interest is paid over the life of the loan?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Expected rate of return on the market

A share of stock is now selling for $120. It will pay a dividend of $10 per share at the end of the year. Its beta is 1. What do investors expect the stock to sell for at the end of the year? Assume the risk-free rate is 6% and the expected rate of r..

  Semi-annual coupon-conversion ratio-holding period return

A convertible bond has a 5 percent, semi-annual coupon and a conversion ratio of 35. The bond has a face value of $1,000 and matures in 18 years. The current yield to maturity is 4.9 percent. Assume that you buy this bond today and sell it one year f..

  Long-term financing needed-long-term debt

At year-end 2013, Wallace Landscaping’s total assets were $1.6 million and its accounts payable were $415,000. Sales, which in 2013 were $3.0 million, are expected to increase by 25% in 2014. Total assets and accounts payable are proportional to sale..

  Which critical path activity would be the most logical

Which critical path activity would be the most logical choice for the second activity to crash?

  If the discount rate is infinite-what is the npv

An investment has an installed cost of $535,800. The cash flows over the four-year life of the investment are projected to be $213,850, $230,450, $197,110, and $145,820. If the discount rate is infinite, what is the NPV?

  Assuming it must issue new stock to finance capital budget

Assume that you are an intern with the Nicholas Enchilada's Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.50 a share; What is the firm's W..

  About the retirement account

You are to make monthly deposits of $475 into a retirement account that pays 10.8 percent interest compounded monthly. Required: If your first deposit will be made one month from now, how large will your retirement account be in 33 years?

  What will these payments be

You are 62 years old, and your house appraises for $450,000. A bank is willing to give you a reverse mortgage at 50% LTV with a 6% fixed contract rate. You choose an option to receive equal monthly payments over a period of 10 years. What will these ..

  Preparing the organization to shift from a catalog

Explain senior management's role in preparing the organization to shift from a catalog-based retailer to an Internet retailer. Provide evidence of whether the transition was seamless or problematic from a management perspective. Provide support fo..

  Internal rate of return equals the required return

Which one of the following will occur when the internal rate of return equals the required return? Explain why?

  The cost of the additional cash discounts taken

In an effort to speed up the collection of receivables, Hill Publishing Company is considering increasing the size of its cash discount by changing its credit terms from "1/ 10, net 30" to "2/ 10, net 30" Currently, the company’s collection period av..

  How would you feel working in a department with couple

Some companies like Nike and Southwest Airlines openly try to recruit couples. Do you think is a good idea? How would you feel working in a department with couple?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd