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A new high-definition television costing $2,999 is on a rent-to-own plan and is to be paid in 18 end-of-month payments (starting one month from now).
A new high-definition television costing $2,999 is on a rent-to-own plan and is to be paid in 18 end-of-month payments (starting one month from now). The monthly payments are determined as follows:
Loan principal = $2,999
Interest = 1.365% per month
Loan application fee = $149
What is the monthly payment for this system? What are the nominal and effective annual interest rates actually being paid by the owner?
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