An outright purchase of $20,000 now (a lump-sum payment) can be traded for 24 equal payments of

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An outright purchase of $20,000 now (a lump-sum payment) can be traded for 24 equal payments of $941.47 per month, starting one month from now. What is the monthly interest rate that establishes equivalence between these two payment plans?

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Engineering Economy

ISBN: 978-0133439274

16th edition

Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

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Question Posted: Dec 03, 2018 12:24 PM

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An outright purchase of $20,000 now (a lump-sum payment) can be traded for 24 equal payments of

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Since payments are made monthly first find the mon...View the full answer

Engineering Economy

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