For the car loan described, give the following information. A car dealer will sell you the...

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For the car loan described, give the following information. A car dealer will sell you the $30,850 car of your dreams for $6,

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Answer 1

Answer #1

c) PV of loan =Price of car -Down payment =30850-6000 =24850
PMT =663.06
Number of periods =60
Interest per period =RATE(60,663.06,-24850) =1.6949%
Effective Rate=(1+1.6949%)^12-1 =22.35%

d) APR =1.69%*12 =20.3%

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Answer 2

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