APR with monthly compounding

cybacatx
 (Not rated)
 (Not rated)
Chat
Home>Homework Answsers>Business & Finance homework help>Accounting homework help

A used car dealer offers the following automobile finance opportunity. Monthly payments on the loan are 3% of the loan amount for 36 months. The loan amount is after any down payment. In addition the loan will require a $1,500 up front loan processing fee that is not included in the loan. 

Part A
For a loan of $20,000, what is the APR with monthly compounding without the up front fee?

Part B
For a loan of $20,000, what is the APR with monthly compounding with the inclusion of the up front fee?

    • 12 years ago
    Report issue
    100% Quality Work A+ Tutorial Guaranteed Work for you use as Guide
    NOT RATED

    Purchase the answer to view it

    • answer.xlsx