Homework Answers
Interest (Extra Amount Charged)= 12720-11045.04= 1674.96 $
Effective Rate = 1674.96/11045.04= 15.46 %
Effective Annual Rate = 15.46/4 = 3.87%
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In the past, a car manufacturer advertised 0% financing on many of its models. For example,...
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Add title, thank you!
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Problem 4.L04.10 (similar to) Question de In the past, a car manufacturer advertised 0% financing on many of its models. For example, a particular model had a cash price of $11.980.46. However, if you elected to buy the car under the 0% financing deal, then the manufacturer used a price of $13,824. If you chose a 48-month term, then the manufacturer calculated your monthly loan payments using the 0% financing price instead of the cash price ($288 per month). In...
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