You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

Question

Question

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your monthly payments are $473.82 for the next 4 years, what is the APR of the loan?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Loan Amount, PV = $20,000

Monthly Payment, PMT = $473.82

Time Period, N = 48 months

Future Value, FV = 0

Calculating APR on Loan,

Using TVM Calculation,

I = [PV = 20,000, PMT = -473.82, N = 48, FV = 0]

I = 6.45%

So,

APR(monthly) on Loan = 6.45%

Add a comment

Answer 2

Similar Homework Help Questions

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your monthly payments are $473.82 for the next 4 years, what is the APR of the loan?
You have just purchased a car and, to fund the purchase, you borrowed $27,500. If your...

You have just purchased a car and, to fund the purchase, you borrowed $27,500. If your monthly payments are $515.27 for the next 5 years, what is the APR of the loan? Multiple Choice 5.38% 4.71% 4.03% 4.34% 4.85%
You have just purchased a car and, to fund the purchase, you borrowed $22,500. If your monthly payments are $430.82 for...

You have just purchased a car and, to fund the purchase, you borrowed $22,500. If your monthly payments are $430.82 for the next 5 years, what is the APR of the loan? Multiple Choice 4.81% 5.60% 5.17% 5.77% 6.40%

You have just borrowed $140,000 to buy a condo. You will repay the loan in equal...

You have just borrowed $140,000 to buy a condo. You will repay the loan in equal monthly payments of $1,474.51 over the next 25 years. a-1. What monthly interest rate are you paying on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Monthly interest rate % a-2. What is the APR? (Do not round intermediate calculations. Enter your answer as a whole percent.) APR % b. What is the effective...
The Phi Nancy Company will lend you $20,000 for your new car purchase. Phi Nancy requires...

The Phi Nancy Company will lend you $20,000 for your new car purchase. Phi Nancy requires that you pay that load back in monthly payments of $950 cash, for a total of thirty-six monthly payments. What is the annual percentage rate (APR) and the effective annual rate (EAT) that Phi Nancy require on this loan?
(25 Points) 2. You have decided to purchase a new car and trade-in your old car....

(25 Points) 2. You have decided to purchase a new car and trade-in your old car. The car dealer has offered you a trade-in value of $25,000 on your old car. The car dealer will finance the remaining cost of the new car; however, you have decided that the maximum monthly car payment that you can afford is $500.00. Your loan rate will be 6 percent APR and you will be financing for 5 years (60 monthly payments). What is...

You just borrowed $300,000 to buy a house. You plan to pay off your loan by...

You just borrowed $300,000 to buy a house. You plan to pay off your loan by making equal monthly payments over the next 20 years. Suppose the interest rate your bank charges you is an APR of 6%, compounded semi-annually. What is the principal payback for the last month in Year 20? $2126.07 $2136.57 $1250 $1500 $1879.22
Assume the following items regarding your purchase of a home: You have saved up $20,000 toward...

Assume the following items regarding your purchase of a home: You have saved up $20,000 toward the purchase of your home. Your salary is $36,000 per year. The bank will lend you up to a total amount where your monthly home loan payment will equal 28% of your monthly salary. The bank is offering you a 30 year loan (360 payments) with an APR of 6%. Closing costs are expected to be 4% of the total loan amount. In light...
6) Assume you just bought a new car and now have a car loan to repay....

6) Assume you just bought a new car and now have a car loan to repay. The amount of the principal is $22,000, the loan is at 5.9% APR, and the monthly payments are spread out over 6 years. What is the loan payment? Use a calculator to determine your answer. A) $305.56 B) $363.57 C) $331.14 D) $297.70

You have just leased a car that has monthly payments of $350 for the next 4...

You have just leased a car that has monthly payments of $350 for the next 4 years with the first payment due today. If the APR is 6.48 percent compounded monthly, what is the value of the payments today?

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

Homework Answers

Add Answer to:
You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

Post as a guest

Earn Coins

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

You have just purchased a car and, to fund the purchase, you borrowed $27,500. If your...

You have just purchased a car and, to fund the purchase, you borrowed $22,500. If your monthly payments are $430.82 for...

You have just borrowed $140,000 to buy a condo. You will repay the loan in equal...

The Phi Nancy Company will lend you $20,000 for your new car purchase. Phi Nancy requires...

(25 Points) 2. You have decided to purchase a new car and trade-in your old car....

You just borrowed $300,000 to buy a house. You plan to pay off your loan by...

Assume the following items regarding your purchase of a home: You have saved up $20,000 toward...

6) Assume you just bought a new car and now have a car loan to repay....

You have just leased a car that has monthly payments of $350 for the next 4...

You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

Homework Answers

Add Answer to: You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...

Post as a guest

Earn Coins

Add Answer to:
You have just purchased a car and, to fund the purchase, you borrowed $20,000. If your...