a Jerome is buying a car for $40,000. He will finance 100% of the car's...
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a Jerome is buying a car for $40,000. He will finance 100% of the car's purchase over 8 years. The car loan rate is 12% compounded monthly. What will Jerome's monthly payment be? (2 marks) Number b. If Jerome can afford monthly payments of no more than $550, how long will it take him to pay off the $40,000 loan at the same interest rate? State your answer in whole months. (2 marks) Number c. The bank tells Jerome that his monthly payment will be $650 and that the $40,000 loan must be paid off in 7 years. What interest rate, compounded monthly, are they charging? State your answer as a nominal rate percentage. You will need to use Excel or a financial calculator for this problem. (2 marks) Number
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