A department store offers the following credit terms on a new appliance "slashed" to a price of $300: only $100 down, and the balance in 24 monthly installments of $12.50. What monthly rate of interest is the company implicitly charging its credit customers? What is the stated annual rate? The effective annual rate?

Answer rating: 100% (QA)

To solve this question we will follow these steps 1 Calculate the total interest paid over the loan period 2 Determine the monthly interest rate 3 Cal... View the full answer