Question
A local rent to own company has a couch special where you can own a new couch by making payments of only $100 per month
A local rent to own company has a couch special where you can own a new couch by making payments of only $100 per month for 18 months. The couch has a retail price of $1,000 if you bought it in full today. What is the annual NOMINAL rate (APR) of interest that you would be paying if you decided to agree to make the 18 monthly payments? (Note that this is a very high rate!)
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Financial Economics
Authors: Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
1st Edition
0470596201, 9780470596203
