Question: Suppose that you needed $ 4 5 , 0 0 0 to purchase a new sail boat. Unfortunately, you could only afford monthly payments of

Suppose that you needed $45,000 to purchase a new sail boat. Unfortunately, you could only
afford monthly payments of $950 to finance the entire loan (i.e., you have no down payment).
Assuming monthly compounding and a five-year fully-amortized loan,
a. What is the highest Annual Percentage Rate (APR) that you could afford to pay on this
Ioan?
Suppose that you needed $45,000 to purchase a new sail boat.

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