A Kirby Vacuum salesman recently came to my home. After demonstrating to me the effectiveness of the machine we came to the discussion on price. I could purchase the machine outright for $1,595 cash, or I could finance the cost of the machine with 48 monthly payments of $52. What would the rate of interest be if I were to choose the option of 48 payments of $52/month?

N =

I/Y = ?

PV =

PMT =

FV =

Please fill out all the cells and also solve for a procedural answer.

Answer rating: 100% (QA)

To find the interest rate IY in this scenario we can use the present value PV the monthly payment PM... View the full answer