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

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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...
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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.

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