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You bought a new car and decided to buy an extended warranty a day later. The dealer offers you two alternative payment plans. The first
You bought a new car and decided to buy an extended warranty a day later. The dealer offers you two alternative payment plans. The first plan requires a $2,000 immediate up-front payment. The second plan requires you to make monthly payments of $100.00, payable at the end of each month for 2 years. What nominal annual interest rate is built into the monthly payment plan?
17.16% | ||
19.86% | ||
15.41% | ||
18.16% | ||
Cannot be determined |
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