Abdullah buys a TV with a cash price RM6,500 by making an initial deposit of RM2,000. The balance will be settled by making 18 monthly deposits of RM300 each. Find the: a) Nominal rate compounded monthly that is being charged. [ans:23.93%] b) Effective rate that is being charged. [ans:26.74%]

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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13.
Abdullah buys a TV with a cash price RM6,500 by making an initial deposit of RM2,000.
The balance will be settled by making 18 monthly deposits of RM300 each. Find the:
a) Nominal rate compounded monthly that is being charged. [ans:23.93%]
b) Effective rate that is being charged. [ans:26.74%]
Transcribed Image Text:13. Abdullah buys a TV with a cash price RM6,500 by making an initial deposit of RM2,000. The balance will be settled by making 18 monthly deposits of RM300 each. Find the: a) Nominal rate compounded monthly that is being charged. [ans:23.93%] b) Effective rate that is being charged. [ans:26.74%]
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