Question
Assume you just received a bill for services you and have the following two payment options: Option 1: Pay the entire bill of $600 now
Assume you just received a bill for services you and have the following two payment options:
Option 1:
Pay the entire bill of $600 now
Or
Option 2:
Pay:
$130 now
And
$130 for each of the next 4 months
What Effective Annual Rate are you paying if you choose Option 2?Assume monthly compounding.Round you answer to the nearest two decimal points.
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Interpreting And Analyzing Financial Statements
Authors: Karen P Schoenebeck, Mark P Holtzman
5th Edition
0136121985, 9780136121985
