# Annua l inte re st ra te s a re still 10 httpsc la ssc

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: na nc e - 005/quiz /f e e dba c k? submission_id= 92142 5/8 16/2/2014 Quiz Fe e dba c k | Cour se r a Yo ur Ans wer Sco re Ex p lanatio n 1 5 .0 0 Corre c t. Right c a lc ula tion, right de c ision. (ye s, ga in 712) (No, loss 324) (no, loss 614) (no, loss 712) (ye s, ga in 324) (ye s, ga in 614) Tota l 1 5 .0 0 / 1 5 .0 0 Ques tio n Ex p lanatio n This is a multi-la ye r proble m; ric he r a nd more pra c tic a l. Alwa ys dra w time line s. Question 9 (15 points) Two ye a rs a go, you purc ha se d a \$20,000 c a r, putting \$4,000 down a nd borrowing the re st. Your loa n wa s a 48-month fixe d ra te loa n a t a sta te d ra te of 6% pe r ye a r.You pa id a non-re funda ble a pplic a tion fe e of \$100 a t tha t time in c a sh. Inte re st ra te s ha ve fa lle n during the la st two ye a rs a nd a ne w ba nk now offe rs to re fina nc e your c a r by le nding you the ba la nc e due a t a sta te d ra te of 4% pe r ye a r. You will use the proc e e ds of this loa n to pa y off the old loa n. Suppose the ne w loa n re quire...
View Full Document

## This test prep was uploaded on 04/06/2014 for the course FINANCE 101 taught by Professor Deck during the Spring '12 term at Michigan State University.

Ask a homework question - tutors are online