You want to buy a new sports coupe for $74,900, and the finance office at the dealership has quoted you a 7.3 percent APR loan for 36 months to buy the car. Requirement 1: What will your monthly payments be? Requirement 2: What is the effective annual rate on this loan?
You are to make monthly deposits of $500 into a retirement account that pays 10.9 percent interest compounded monthly. Required: If your first deposit will be made one month from now, how large will your retirement account be in 34 years?
You have an investment that will pay you 1.97 percent per month. Requirement 1: How much will you have per dollar invested in one year? Requirement 2: How much will you have per dollar invested in two years?
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