Question

Amortization schedule with periodic payments. Moulton Motors is advertising the following deal on a used Honda​ Accord: ​ "Monthly payments of $198.79 for the next 54 months and this beauty can be​ yours!" The sticker price of the car is $8,800. If you bought the​ car, what interest rate would you be paying in both APR and EAR​ terms? What is the amortization schedule of the first six​ payments?

If you bought the​ car, what monthly interest rate would you be​ paying?

________% ​(Round to five decimal​ places.)

If you bought the​ car, what annual interest rate would you be​ paying?

________% ​(Round to five decimal​ places.)

If you bought the​ car, what EAR interest rate would you be​ paying?

________% ​(Round to five decimal​ places.)

20 parts remaining

Answer 1

Formula Used:-

Monthly Rate=RATE(B84,B83,-B82)

APR=B86*12

EAR=(1+B86)^12-1

Amortization schedule for first 6 payments