A motor corporation sells cars for P dollars, 40% of which must be paid in cash. The unpaid balance plus 8% of this balance is divided into equal monthly payments to be made for the following 15 months. What effective rate of interest is one actually paying when buying on this plan?
A motor corporation sells cars for P dollars, 40% of which must be paid in cash. The unpaid balance plus 8% of this balance is divided into equal monthly payments to be made for the following 15 months. What effective rate of interest is one actually paying when buying on this plan?
Chapter7: Budgeting
Section: Chapter Questions
Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...
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A motor corporation sells cars for P dollars, 40% of which must be paid in cash. The unpaid balance plus 8% of this balance is divided into equal monthly payments to be made for the following 15 months. What effective rate of interest is one actually paying when buying on this plan?
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