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Tatiana [17]
3 years ago
9

We have acquired new furniture for the office. The invoice for $6,000 offers two ways to pay: we can pay the entire amount by Se

ptember 1, or we can pay $3,060 by September 1 and $3,000 by January 1. How does our decision depend on the interest rate at which we can invest our funds
Business
1 answer:
Drupady [299]3 years ago
5 0

Answer:

6.12%

Explanation:

Calculation for How does our decision depend on the interest rate at which we can invest our funds

Present value = 6000-3060

Present value = 2940

Future value = Present value+Present Value*Numver of month* Rate of interest/ 100

3000 = 2940+2940*4/12*R/100

60 = 2940*4/12*R/100

60*12/4 = 2940*R/100

180 = 2940*R/100

180/2940 = R/100

0.061224 = R/100

Rate = 6.1224

Therefore How does our decision depend on the interest rate at which we can invest our funds is 6.1224

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