Question
21. 5.Derek decides to buy a new car. The dealership offers him a choice of paying $600.00 per month for 5 years (with the first
21.
5.Derek decides to buy a new car. The dealership offers him a choice of paying $600.00 per month for 5 years (with the first payment due next month) or paying some $28,855.00 today. He can borrow money from his bank to buy the car. What interest rate makes him indifferent between the two options?
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
