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You take out a $9,000 car loan that calls for 36 monthly payments starting after 1...

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Finance

You take out a $9,000 car loan that calls for 36 monthlypayments starting after 1 month at an APR of 9%.
a. What is your monthly payment? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)
b. What is the effective annual interest rate on the loan? (Do notround intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.)
c. Now assume the payments are made in four annual year-endinstallments. What annual payment would have the same present valueas the monthly payment you calculated? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)

Answer & Explanation Solved by verified expert
4.2 Ratings (697 Votes)
a Information provided Present value 9000 Time 36 months Interest rate 912 075 per month The monthly payment iscalculated by entering the below    See Answer
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Transcribed Image Text

You take out a $9,000 car loan that calls for 36 monthlypayments starting after 1 month at an APR of 9%.a. What is your monthly payment? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)b. What is the effective annual interest rate on the loan? (Do notround intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.)c. Now assume the payments are made in four annual year-endinstallments. What annual payment would have the same present valueas the monthly payment you calculated? (Do not round intermediatecalculations. Round your answer to 2 decimal places.)

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