(SOLVED) A car lease of $21794 is to be repaid by making payments at the beginning of each month for 3 years.
Type of Paper: Question-Answer
Academic Level: Undergrad. (yrs 1-2)
Paper Format: APA
Pages: 1 Words: 59
A car lease of $21794 is to be repaid by making payments at the beginning of each month for 3 years.
If interest is 2% compounded semi annually, how much is our monthly car payment?
Expert Solution Preview
As interest rate compounded semi-annually is given in the question and payments are monthly. Therefore, firstly it is required to calculate the effective rate from the rate given and then to calculate the interest rate compounded monthly from the effective rate calculated.
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