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You are considering buying an Audi for ?$60,000?, and your financing is quoted at 8?% APR with monthly compounding.
a. What rate do you need in order to use one of the following annuity formulas to find the monthly? payments?
PV(annuity of C for n periods with interest rate r)=C×1r1-1(1+r)n or PV(growing perpetuity)=Cr-g
b. What is the effective annual rate of interest for this? financing?
The rate that should be used for the formulas is r=
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