Question
You are in the market for a new boat, and have just found the one you want to purchase. You can pay for the boat
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You are in the market for a new boat, and have just found the one you want to purchase. You can pay for the boat with cash for $20,000 today, or you can finance the boat for 4 years with monthly payments of $550.00. What is the implied interest rate of the loan?
1.2%
2.4%
4.6%
6.8%
You are in the market for a new boat, and have just found the one you want to purchase. You can pay for the boat with cash for $20,000 today, or you can finance the boat for 4 years with monthly payments of $550.00. What is the implied interest rate of the loan?
| 1.2% | ||
| 2.4% | ||
| 4.6% | ||
| 6.8% |
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Introduction To Finance Financial Management And Investment Management
Authors: Pamela P. Drake, Frank J. Fabozzi, Francesco A. Fabozzi
1st Edition
9811239657, 978-9811239656
