A PIECE OF MACHINERY CAN BE BOUGHT FOR P10,000.00 CASH OR FOR P2,000.00 DOWN AND PAYMENTS OF P750 PER YEAR FOR 15 YEARS. WHAT IS THE ANNUAL INTEREST RATE FOR THE TIME PAYMENTS? a.5.71% b.3.81% c.4.61% d.11.00%

A PIECE OF MACHINERY CAN BE BOUGHT FOR P10,000.00 CASH OR FOR P2,000.00 DOWN AND PAYMENTS OF P750 PER YEAR FOR 15 YEARS. WHAT IS THE ANNUAL INTEREST RATE FOR THE TIME PAYMENTS? a.5.71% b.3.81% c.4.61% d.11.00%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

A PIECE OF MACHINERY CAN BE BOUGHT FOR P10,000.00 CASH OR FOR P2,000.00 DOWN AND PAYMENTS OF P750 PER YEAR FOR 15 YEARS. WHAT IS THE ANNUAL INTEREST RATE FOR THE TIME PAYMENTS?

a.5.71%

b.3.81%

c.4.61%

d.11.00%

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