You want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years. However, the bank requires you to make down payment of 10% of the amount you want to borrow and will lend you the rest. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments then what will be your approximate monthly installment on the amount that you borrow? Group of answer choices $170.43 $154.31 $171.45 $160.31
You want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years. However, the bank requires you to make down payment of 10% of the amount you want to borrow and will lend you the rest. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments then what will be your approximate monthly installment on the amount that you borrow? Group of answer choices $170.43 $154.31 $171.45 $160.31
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...
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You want to buy a car and therefore you need $10,000. You can borrow from a bank today for 6 years. However, the bank requires you to make down payment of 10% of the amount you want to borrow and will lend you the rest. The nominal interest rate that the bank charges is 7.2%. If you intend to make equal end-of-month payments then what will be your approximate monthly installment on the amount that you borrow?
Group of answer choices
$170.43
$154.31
$171.45
$160.31
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