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Determine the interest rate you will pay

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Q1. Carmen Hernández has saved $ 8,000 for a car deposit. The highest monthly payment she can afford is $ 455. The loan will have an APR of 11% due at the end of each month. Determine what is the most expensive car you can buy if you buy it on credit payable in 60 months.

Q2. Determine the present value of a financial instrument that pays $ 18,500 in 10 years if similar risk instruments pay 6% per year.

Q3. Calculate the future value (FV) of a $ 5,000 investment at an interest rate of 10% over 7 years.

Q4. Determine the interest rate you will pay, if you are approved for a loan for $ 112,000 with annual payments of $ 15,000 over 8 years.

Reference no: EM132853694

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