Question: Calculate the effective interest rate that your client will be paying if they choose interest free payments. 34 $ 35 2. Your client is interested

Calculate the effective interest rate that your client will be paying if they choose "interest free" payments.

34 $ 35 2. Your client is interested in purchasing a new car. The terms are: 36 37 Sticker price $ 100,000.00 38 Choose either: 39 i. Cash discount of 12% 40 or 41 11. Monthly interest-free payments for 48 months 42 43 Calculate the effective interest rate that your client will be paying 44 if your client chooses II., the "interest-free" payments. 45 46

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