A local bank will lend a customer $1000 on a 2-year car loan as follows: Money to

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A local bank will lend a customer $1000 on a 2-year car loan as follows:

Money to pay for car$1000

Two years' interest at 7%: 2 x 0.07 x 1000140

24 monthly payments = 1140/24 = $47.50$1140

The first payment must be made in 30 days. What is the nominal annual interest rate the bank is receiving?

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Engineering Economics

ISBN: 9780195168075

9th Edition

Authors: Ted G. Feller

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Question Posted: Mar 01, 2010 04:13 AM

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A local bank will lend a customer $1000 on a 2-year car loan as follows: Money to

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P 1000 n 24 months i A 4750 P A PA i n 1000 4750 PA i n ...View the full answer

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