Question
You wish to buy a fancy mountain bike. You can either pay $800 cash now or make end-of-month payments of $100, 95, 90, 85, .
You wish to buy a fancy mountain bike. You can either pay $800 cash now or make end-of-month payments of $100, 95, 90, 85, . . ., 45 over the next 12 months. What is the effective annual rate for the second payment plan?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
