You want to buy a car, and a local bank will lend you 20000. The...
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You want to buy a car, and a local bank will lend you 20000. The loan will be paid off over 5 years with equal monthly payment.
Question 4 (4 points) 0.57, 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. (1) (2 points) If the nominal interest rate of the loan is quoted as 6% with monthly compounding assumption, what is your monthly payment? (2) (1 point) What is the effective annual rate of Part (1)? (3) (1 point) If the nominal interest rate of the loan is quoted as 6% with semiannual compounding assumption, what is your monthly payment
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