You want to buy a car, and a local bank will lend you $25,000. the loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 4% with interest paid monthly. what will be the monthly loan payment? what will be the loan's ear? do not round intermediate calculations. round your answer for the monthly loan payment to the nearest cent and for ear to two decimal places.

Monthly payment: 460.41 dollars

Effective rate:  4.07%

Explanation:

we will calculate the PTM of an annuity of 25,000 over 5 year at 4%

PV  $25,000.00

time60

rate0.003333333

C  $ 460.413

Now we need to know the effective rate, which is the same as 4% compounding monthly:

effective  rate = 0.040741543 = 4.07%

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

answer; buying the bill at a discount from the face value to be received at maturity;