In department and home entertainment stores, the Samsung 32-inch LCD HD TV mentioned above was priced in
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In department and home entertainment stores, the Samsung 32-inch LCD HD TV mentioned above was priced in the neighbour-hood of $650. Suppose we treat the rent-to-own transaction as a purchase-on-credit transaction wherein the $650 purchase price is paid off by beginning-of-week payments of $13.66 for 156 weeks. What are the imputed weekly compounded interest rate and effective interest rate? Assume there are exactly 52 weeks in a year. (Since the actual transaction is a rental transaction rather than a credit transaction, it is not subject to the Criminal Code’s requirement that the effective rate of interest must not exceed 60%.)
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Related Book For
Business Mathematics In Canada
ISBN: 9781260065992
10th Edition
Authors: F. Ernest Jerome, Tracy Worswick
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