The Indianapolis Pacers have several different season ticket packages ranging from over $100 per seat for courtside tickets to upper level seats priced at $10 each. I decided to buy season tickets (there are 41 home games in total) for my family of 4 and settled on the $30 tickets. I have the option of paying the full amount today, or I can take the payment plan where I will make 6 equal monthly payments (the first payment is due immediately) of $840.53. 

What is the Effective Annual Rate (EAR) of interest implicit in the payment plan?

Answer rating: 100% (QA)

To calculate the Effective Annual Rate EAR of interest implicit in the payment plan we need to use t... View the full answer