Question
A borrows 1000 from B and agrees to pay it in 8 equal installments at 18% effective, with the first payment due in one year.
A borrows 1000 from B and agrees to pay it in 8 equal installments at 18% effective, with the first payment due in one year. After 3 payments B sells her right to future payments to C at a price that yields C 19% effective.
a. Find the price which C pays to B and overall yield rate to B.
b. Find the overall yield rate to C.
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
