In Problems solver 65 - 68 , use graphical approximation techniques or an equation solver to approximate the desired interest rate. Express each answer as a percentage, correct to two decimal places. A discount electronics store offers to let you pay for a $1,000 stereo in 12 equal $90 installments. The store claims that since you repay $1,080 in 1 year, the $ 80 finance charge represents an 8 % annual rate. This would be true if you repaid the loan in a single payment at the end of the year. But since you start repayment after 1 month, this is an amortized loan, and 8 % is not the correct rate. What is the annual nominal compounding rate for this loan?
In Problems solver 65 - 68 , use graphical approximation techniques or an equation solver to approximate the desired interest rate. Express each answer as a percentage, correct to two decimal places. A discount electronics store offers to let you pay for a $1,000 stereo in 12 equal $90 installments. The store claims that since you repay $1,080 in 1 year, the $ 80 finance charge represents an 8 % annual rate. This would be true if you repaid the loan in a single payment at the end of the year. But since you start repayment after 1 month, this is an amortized loan, and 8 % is not the correct rate. What is the annual nominal compounding rate for this loan?
In Problems solver
65
-
68
, use graphical approximation techniques or an equation solver to approximate the desired interest rate. Express each answer as a percentage, correct to two decimal places.
A discount electronics store offers to let you pay for a
$1,000
stereo in
12
equal
$90
installments. The store claims that since you repay
$1,080
in
1
year, the
$
80
finance charge represents an
8
%
annual rate. This would be true if you repaid the loan in a single payment at the end of the year. But since you start repayment after
1
month, this is an amortized loan, and
8
%
is not the correct rate. What is the annual nominal compounding rate for this loan?
Calculus for Business, Economics, Life Sciences, and Social Sciences (14th Edition)
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