Loan amortization and earyou want to buy a car and a local, Ask an Expert

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Loan amortization and EAR

You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 7% with interest paid monthly.

Required:

Question 1: What will be the monthly loan payment? Round your answer to the nearest cent.

Question 2: What will be the loan's EAR? Round your answer to two decimal places.

Please show your all work.

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Category:- Basic Finance
Reference No.:- M91147374

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