use the formula approach or calculator approach, answer the following questions: 19. Suppose you want to borrow
Question:
use the formula approach or calculator approach, answer the following questions:
19. Suppose you want to borrow $20,000 for a new car. You can borrow at 8% per year, compounded monthly. If you take a 4-year loan, what is your monthly payment?
20. Suppose you borrow $10,000 from your parents to buy a car. You agree to pay $207.58 per month for 60 months. What is the monthly interest rate?
21. You ran a little short on your spring break vacation, so you put $1,000 on your credit card. You can afford only the minimum payment of $20 per month. The interest rate on the credit card is 1.5 percent per month. How long will you need to pay off the $1,000?
22. Suppose you borrow $2,000 at 5%, and you are going to make annual payments of $734.42. How long before you pay off the loan?
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez