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CHAPTER 3
Understanding Money Management
3.7You are purchasing a $16,000 used automobile,which is to he paid for in 36 monthly install-ments of $517.78. What nominal interest rateare you paying on this financing arrangement?
3.8You obtained a loan of $20,000 to finance yourpurchase of an automobile. Based on monthlycompounding over 24 months, the end-of-the- monthequal payment was figured to be $922.90. Whatis the APR used for this loan?
3.9 James Hogan is purchasing a $24,000 automobilewhich is to be paid for in 48 monthly installments$583.66. What is thc effective annualinterest rate for thisfinancing arrangement?
3.10 Find the effective interest rate perpayment period for an interest rate of 9%compounded monthly if the paymentperiod is