Question 1 (c) Suppose you are paying off your new fridge by monthly instalments of £25 paid in arrears over five years. Assuming an effective interest rate of 3% per annum, what was the price of the fridge?
Question 1 (c) Suppose you are paying off your new fridge by monthly instalments of £25 paid in arrears over five years. Assuming an effective interest rate of 3% per annum, what was the price of the fridge?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question 1
(c) Suppose you are paying off your new fridge by monthly instalments of £25 paid in
arrears over five years. Assuming an effective interest rate of 3% per annum, what
was the price of the fridge?
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