Question
Orange City needs to purchase a fleet of new police vehicles. The city will purchase 10 vehicles, each costing $35,000 and they will borrow the
Orange City needs to purchase a fleet of new police vehicles. The city will purchase 10 vehicles, each costing $35,000 and they will borrow the entire purchase price with a 5 year loan and make monthly payments. The city council has budgeted $7,000 per month to pay off the vehicle loan. What is the maximum annual interest rate the city can afford to pay on the loan?
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
