Provide this question general accounting solutions Spike buys a car from John's Auto Martfor $5,000. He finances the car from the dealerand agrees to make payments of $180 permonth for 3 years. What is the yield to maturityon this fixed payment loan?

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Answered: Spike buys a car from John's Auto Mart…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Spike buys a car from John's Auto Mart for $5,000. He finances the car from the dealer and agrees to make payments of $180 per month for 3 years. What is the yield to maturity on this fixed payment loan?