Six months ago, you purchased a new pickup truck. At the time, you were a little light
Question:
Six months ago, you purchased a new pickup truck. At the time, you were a little light on cash and decided to finance the purchase. You financed a total of $24,500 with a 60-month amortized loan where the monthly payments are $494.43. a) What is the Annual Percentage Rate (APR) on the loan? (3 points) b) What is the Effective Annual Rate (EAR) on the loan? (3 points) c) What is the total amount of interest that you will pay during the first 6 months of the loan (3 points) d) What is the total amount of interest that you would pay over the entire 60-month term of the loan? (3 points) e) If you decided to pay the loan off immediately after you made the 6th monthly payment, how much would the payoff be? (3 points)
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow