A friend purchased a new sound system that was selling for $4200: He agreed to make a down payment of $1000 and to make 24 monthly payments of $160; beginning one month from the time of purchase. What is the e ective interest rate being paid?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
A friend purchased a new sound system that was selling for $4200: He agreed to make a down payment
of $1000 and to make 24 monthly payments of $160; beginning one month from the time of purchase.
What is the e ective interest rate being paid?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
