Problem 3 sell you some carpet. $20,000. No money down and only 1% interest per year for the $20,000 along with the interest. If you borrowed from the bank you would have to y Buddy will ears. (You send him the 1%at the end of each year). At the end of the 2nd year you two y send him pay 12%-a he ck of a deal... or is it? (How much are you really paying for the carpet?)