Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of $5,000. The remaining $23,000 will be financed by the dealer. The dealer computes your monthly payment to be $1540, for 60 months of financing. What is the dealer's annual rate of return on this car loan?

Assume that you are going to buy a new car worth $28,000. You will be able to make a down payment of $5,000. The remaining $23,000 will be financed by the dealer. The dealer computes your monthly payment to be $1540, for 60 months of financing. What is the dealer's annual rate of return on this car loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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