A car dealer offered $1250 cash back or 1.9% factory financing over 60 months to purchasers of
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A car dealer offered $1250 cash back or 1.9% factory financing over 60 months" to purchasers of selected new vehicle models. A customer financed $30,000 at the low interest rate instead of paying $28,750 cash (after the $1250 rebate). What was the effective rate of interest on the loan if the forgone cash rebate was treated as part of the cost of financing? (The 1.9% interest rate was a monthly compounded nominal rate.)
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Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
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