You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments and then make an additional final payment of $1,000 at the end of the last month then what will be your approximate monthly installment?
You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments and then make an additional final payment of $1,000 at the end of the last month then what will be your approximate monthly installment?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 2P: Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for...
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You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments and then make an additional final payment of $1,000 at the end of the last month then what will be your approximate monthly installment?
Group of answer choices
$170.43
$175.45
$154.31
$160.31
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