Problem 6.41 – Calculating Annuity Present Values

Fundamentals of Corporate Finance

Ross, Westerfield, and Jordan

13th Edition

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Calculate the highest monthly compounding rate that an individual can afford on a 60-month APR loan, to borrow $95,000 for a new sailboat. The individual can make monthly payments of $1,850, but no more. (Your numbers will vary) Find the highest rate you can afford on a loan.

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