Lee wanted to compute the monthly payment on a 2-year, $8,400 loan at an APR of 3.07%.

Question:

Lee wanted to compute the monthly payment on a 2-year, $8,400 loan at an APR of 3.07%. She entered the keystrokes at the right on her calculator. The display gives an answer of 48, which Lee knows is incorrect. Explain what her error was.

8400(0.0307/12)(1+0.0307/12)^24/(1+0.0307/12)^24-1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Financial Algebra Advanced Algebra With Financial Applications

ISBN: 9781337271790

2nd Edition

Authors: Robert Gerver, Richard J. Sgroi

See More Books

Question Posted: Sep 13, 2022 01:01 AM

See More Questions

What is the monthly payment on a 30-year fixed-rate mortgage if the original balance is $220,000 and the rate is 6.3 percent?
The calculated monthly payment on a loan amortized over five years is rounded up by 0.2 cents to get to the nearest cent. a. Will the adjusted final payment be more than or less than the regular...
The calculated monthly payment on a loan amortized over 10 years is rounded down by 0.3 cents to get to the nearest cent. a. Will the adjusted final payment be more than or less than the regular...
1. Explain the Theories of leadership 2. Research -In modern times give 1 example as to which business leader in the hospitality industry has made a mark and why.?
Do futures contracts need to be regulated? If yes, what can go wrong without regulation? Give an example to explain your answer.
How does the target cost method differ from cost-plus approaches?
An effective way to learn how companies respond to the competing pressures to be globally integrated and locally responsive is to study them in action. Referring back to Exhibit 6.3, search online...
Morris Corporation is publicly owned, and its shares are traded on a national stock exchange. Morris has 16,000 shares of $2 stated value common stock authorized. Only 75% of these shares have been...
RELATIONAL DATABASE CONCEPTS: Describe the basic steps required to install the Oracle, SQL Server, and MySQL relational database management systems (RDBMSs) and the major challenges that the user may...
In May of the current year, your employer received a PIER report from the CRA that identified Canada Pension Plan (CPP) contribution deficiencies for employees in the organization who: turned 18...
A local coupon mailer charges $11 for each of the first three lines of an ad and $5 for each additional line. a. What is the price of a two-line ad? b. What is the price of a five-line ad? c. If x is...
Bernie bought a refrigerator at a special sale. The refrigerator regularly sold for $986. No down payment was required. Bernie has to pay $69 per month for 1 years. What is the average amount Bernie...
Schmidt (1994) conducted a series of experiments examining the effects of humor on memory. In one study, participants were shown a list of sentences, of which half were humorous and half were...
Give two examples of explicit knowledge and two examples of tacit knowledge in a business context of your choice.
What are the problems in conducting due diligence in a global context?
What are the benefits of global standardization?
Monetary policy affects the economy with a lag mainly because it takes a long time a. for central banks to make policy changes. b. to change the money supply after a policy decision has been made. c....
What is an extractive agenda in an alliance?
At the beginning of year 1, an entity grants to 20 senior executives 1000 share options, each based on two conditions. First, the executive has to remain with the entity until the end of year 3....
The rate at which the temperature of an object changes is proportional to the difference between its own temperature and the temperature of the surrounding medium. Express this rate as a function of...
Calculate the missing amounts in the amortization table which shows extra payments toward the principal made each month. Payment Beginning Monthly Towards Towards EndingExtra 100 b 208,890.81 200...
Adam is taking out a $197,000 mortgage. His bank offers him an APR of 7.45%. He wants to compare monthly payments on a 20- and a 30-year loan. Find, to the nearest ten dollars, the difference in the...
Brianna just signed a lease on a rental apartment. The current rent is $1,330 per month, and she estimates a 6% increase each year. Use her estimate to predict the sum of the next five years' worth...
Please explain these 5 control methods on job hazard safety analysis on housekeeping, Chemical safety Waste management Equipment safety Manual handling techniques Fall prevention:
A person wearing the shoes has a mass of 58 kg (Figure 1) Estimate the pressure exerted on a floor by one pointed heel of area 0.45 cm. Express your answer to two significant figures and include the...
1. Define and explain how collaborarive leadership strategies are interrelated. 2. Describe different ways to build collaborative leadership skills.

Lee wanted to compute the monthly payment on a 2-year, $8,400 loan at an APR of 3.07%.

Question:

Step by Step Answer:

So question is Lee wants to calculate its monthly payment if he takes loan off 48 and he knows this ...View the full answer

Financial Algebra Advanced Algebra With Financial Applications

Students also viewed these Mathematics questions