You are selling your car and the dealership says to you, "we can either give you $15,000 today or we can give you $5,000 per year starting one year from now for the next 4 years." At what interest rate are you indifferent? (i.e. what interest rate is being provided here?) Choose the closest. a) 18.8% b) 33.3% c) 12.6% d) 6.7%

You are selling your car and the dealership says to you, "we can either give you $15,000 today or we can give you $5,000 per year starting one year from now for the next 4 years." At what interest rate are you indifferent? (i.e. what interest rate is being provided here?) Choose the closest. a) 18.8% b) 33.3% c) 12.6% d) 6.7%

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 31P

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