Homework Answers
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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