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mixas84 [53]
3 years ago
6

The store where you bought new home furnishings offers you two alternative payment plans. The first plan requires a $4,000 immed

iate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?
Business
1 answer:
blondinia [14]3 years ago
8 0

Answer:

The nominal annual interest rate is built into the monthly payment plan is 14.4%

Explanation:

E = P×r×(1 + r)n/((1 + r)n - 1)

where:

E is the EMI

p is the Principal

r is the nominal rate

n is the number of periods

$137.41 = $4,000*r* (1 + r)36/((1 + r)^36 -1)

           r = 14.4% P.A

Therefore, The nominal annual interest rate is built into the monthly payment plan is 14.4%

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Answer:

D

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CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100

Changes in the quality of good is not included in the calculation of CPI. This is one of its drawbacks

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2 years ago
Wansley Enterprises is considering a new project. The company has a beta of 1.0, and its sales and profits are positively correl
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Considering the available options, the option that appears negative and related to the point being discussed is

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