How long in years is the loan for

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Reference no: EM131949812

1. Suppose your friend Paul is considering buying a new Honda Accord. He is going to make monthly payments (at the end of each month) of $557.08 on a loan of $28,000. If the annual percentage rate is 7.20%, how long in years is the loan for?

Please show work using formula.

2. What annual interest rate do you need for an investment to be worth $9,332.73 six years in the future with semi-annual compounding if you deposit $6,000 today?

Please show work using formula.

Reference no: EM131949812

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