Question: Problem 5-40 Calculating Annuity Present Values [LO 2] You want to borrow $72,000 from your local bank to buy a new sailboat. You can afford

Problem 5-40 Calculating Annuity Present Values [LO 2]

You want to borrow $72,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,300, but no more.

Required:

Assuming monthly compounding, what is the highest rate you can afford on a 72-month APR loan? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

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