For the car loan described, give the following information. A newspaper advertisement offers a $9,000 for nothing down and 36 monthly payments of $332.50. a. amount to be paid $11,970.00 b. amount of interest $2,970.00 c. interest rate 11% d. APR (rounded to the nearest tenth percent). I tried this part of the problem and it's not 5.8 or 5.9%. It's still wrong. What is the APR?
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
For the car loan described, give the following information.
A newspaper advertisement offers a $9,000 for nothing down and 36 monthly payments of $332.50.
a. amount to be paid
$11,970.00
b. amount of interest
$2,970.00
c. interest rate
11%
d. APR (rounded to the nearest tenth percent).
I tried this part of the problem and it's not 5.8 or 5.9%. It's still wrong.
What is the APR?
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