1 time line might be helpful to you; (you can do part d, e and f...

 

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1 time line might be helpful to you; (you can do part d, e and f even if you could not do a, b and c). < Damir bought a used car for $12,000; he financed it with a six-year (6 years) bank loan at APR of 8% compounded monthly. After 2-year, Damir got very good job and decided to sell his used car and pay off the loan. Damir wants to buy a brand-new BMW. < a) What is Damir monthly payment on his used car? < b) What is the outstanding loan that Damir has to pay to the bank when he sells his used car? c) What is the dollar amount interest paid over the first two years when he pays his outstanding loan? < d) Calculate the EAR and Effective Monthly rate for Mr. Damir bank loan. < e) Clearly explain the difference and similarity between EAR and APR. < f) When we compare loan what we use? If another leader offers Damir APR 8.25% compounded annually which loan Damir should take and why? 1 time line might be helpful to you; (you can do part d, e and f even if you could not do a, b and c). < Damir bought a used car for $12,000; he financed it with a six-year (6 years) bank loan at APR of 8% compounded monthly. After 2-year, Damir got very good job and decided to sell his used car and pay off the loan. Damir wants to buy a brand-new BMW. < a) What is Damir monthly payment on his used car? < b) What is the outstanding loan that Damir has to pay to the bank when he sells his used car? c) What is the dollar amount interest paid over the first two years when he pays his outstanding loan? < d) Calculate the EAR and Effective Monthly rate for Mr. Damir bank loan. < e) Clearly explain the difference and similarity between EAR and APR. < f) When we compare loan what we use? If another leader offers Damir APR 8.25% compounded annually which loan Damir should take and why?

Answer rating: 100% (QA)

Answer So Damirs monthly payment on his used car loan ... View the full answer