Question

You want to buy a car, and a local bank will lend you $20,000. The loan will be paid off over 5 years with equal monthly payment.

Q: If the nominal interest rate of the loan is quoted as 6% with semiannual compounding assumption, what is your monthly payment?

Answer #1

You
want to buy a car, and the bank will lend you $20,000. The loan
will be fully amortized over five years. Nominal interest rate will
be 6% with interest paid monthly. What will be the loan monthly
payment. How much of the second month payment will be
interest?

You want to buy a car, and a local bank will lend you $20,000.
The loan would be fully amortized over 3 years (36 months), and the
nominal interest rate would be 6%, with interest paid monthly. What
is the monthly loan payment? Do not round intermediate
calculations. Round your answer to the nearest cent.
$ ---------------
What is the loan's EFF%? Do not round intermediate calculations.
Round your answer to two decimal places.
-----------%

You want to buy a car, and a local bank will lend you $30,000.
The loan will be fully amortized over 3 years (60 months), and the
nominal interest rate will be 5.25% with interest paid monthly.
What will be the monthly loan payment? What will be the
loan’s EAR?

You want to buy a car, and a local bank will lend you $10,000.
The loan would be fully amortized over 3 years (36 months), and the
nominal interest rate would be 15%, with interest paid monthly.
What is the monthly loan payment? What is the loan's EFF%?

You want to buy a car, and a local bank will lend you $35,000.
The loan would be fully amortized over 5 years (60 months), and the
nominal interest rate would be 15%, with interest paid monthly.
What is the monthly loan payment? Do not round intermediate
calculations. Round your answer to the nearest cent.

You want to buy a car, and a local bank will lend you $35,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 10% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places.

You want to buy a car, and a local bank will lend you $40,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 4% with interest paid monthly. What
will be the monthly loan payment? What will be the loan's EAR? Do
not round intermediate calculations. Round your answer for the
monthly loan payment to the nearest cent and for EAR to two decimal
places.

You want to buy a car, and a local bank will lend you $25,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 9% with interest paid monthly. What
will be the monthly loan payment? Do not round intermediate steps.
Round your answer to the nearest cent. $
What will be the loan's EAR? Do not round intermediate steps.
Round your answer to two decimal places. %

You want to buy a car, and a local bank will lend you $15,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 11% with interest paid monthly.
What will be the monthly loan payment? Do not round intermediate
steps. Round your answer to the nearest cent.
$
What will be the loan's EAR? Do not round intermediate steps.
Round your answer to two decimal places.
%

You want to buy a car, and a local bank will lend you $10,000.
The loan will be fully amortized over 5 years (60 months), and the
nominal interest rate will be 7% with interest paid monthly.
What will be the monthly loan payment? Do not round intermediate
steps. Round your answer to the nearest cent.
What will be the loan's EAR? Do not round intermediate steps.
Round your answer to two decimal places.

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