In order to purchase a new car, imagine that you recently have borrowed $15,000 from a bank that charges you according to a nominal rate of 8%. The loan is payable in 60 months. (a) Calculate the monthly payments. (b) Assume the bank charges a loan fee of 4.5% of the loan amount payable at the time they give you the loan. What is the effective interest rate that you actually are being charged?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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In order to purchase a new car, imagine that you recently have borrowed $15,000 from a bank that charges you according to a nominal rate of 8%. The loan is payable in 60 months. (a) Calculate the monthly payments. (b) Assume the bank charges a loan fee of 4.5% of the loan amount payable at the time they give you the loan. What is the effective interest rate that you actually are being charged?

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