mountain bike can be purchased for $1000 cash. It may also be purchased for 12 monthly payments of $100.00.   a. calculate the dollar cost of credit   b. use the formula I= 2yc/p(n+1) x 100% to calculate the annual percentage of interest

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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mountain bike can be purchased for $1000 cash. It may also be purchased for 12 monthly payments of $100.00.

 

a. calculate the dollar cost of credit

 

b. use the formula I= 2yc/p(n+1) x 100% to calculate the annual percentage of interest

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