GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD TV, with selling price of 50,000, a customer can purchase it for cash down payment of 10,000 and balance amount by adopting any of the following options Tenure of Monthly installments Equated monthly installment *3800 2140 12 I 24 Required: Estimate the flat and effective rate of interest for each alternative. = 10.5107 =18.6593 PVIFA 2.05%, 12 =10.5429 PVIFA2.10%, 24 = 18.7014 PVIFA2.10%, 12 PVIFA2.12%, 24

GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD TV, with selling price of 50,000, a customer can purchase it for cash down payment of 10,000 and balance amount by adopting any of the following options Tenure of Monthly installments Equated monthly installment *3800 2140 12 I 24 Required: Estimate the flat and effective rate of interest for each alternative. = 10.5107 =18.6593 PVIFA 2.05%, 12 =10.5429 PVIFA2.10%, 24 = 18.7014 PVIFA2.10%, 12 PVIFA2.12%, 24

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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