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GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD TV, with selling price of 50,000, a customer can purchase it for cash down payment of 10,000 and balance amount by adopting any of the following options Tenure of Monthly installments Equated monthly installment *3800 2140 12 I 24 Required: Estimate the flat and effective rate of interest for each alternative. = 10.5107 =18.6593 PVIFA 2.05%, 12 =10.5429 PVIFA2.10%, 24 = 18.7014 PVIFA2.10%, 12 PVIFA2.12%, 24

GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD TV, with selling price of 50,000, a customer can purchase it for cash down payment of 10,000 and balance amount by adopting any of the following options Tenure of Monthly installments Equated monthly installment *3800 2140 12 I 24 Required: Estimate the flat and effective rate of interest for each alternative. = 10.5107 =18.6593 PVIFA 2.05%, 12 =10.5429 PVIFA2.10%, 24 = 18.7014 PVIFA2.10%, 12 PVIFA2.12%, 24

Essentials Of Investments
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
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GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD TV, with selling price of 50,000, a customer can purchase it for cash down payment of 10,000 and balance amount by adopting any of the following options Tenure of Monthly installments Equated monthly installment 12 *3800 24 2140 Required: Estimate the flat and effective rate of interest for each alternative. PVIFA 2.05%, 12 =10.5429 = 10.5107 PVIFA2.10%, 24 =18.7014 =18.6593 PVIFA2.10%, 12 PVIFA2.12%, 24
Transcribed Image Text:GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD TV, with selling price of 50,000, a customer can purchase it for cash down payment of 10,000 and balance amount by adopting any of the following options Tenure of Monthly installments Equated monthly installment 12 *3800 24 2140 Required: Estimate the flat and effective rate of interest for each alternative. PVIFA 2.05%, 12 =10.5429 = 10.5107 PVIFA2.10%, 24 =18.7014 =18.6593 PVIFA2.10%, 12 PVIFA2.12%, 24
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