You agree to purchase some new furniture for $18,000. When you are about to pay, the store clerk offers you a simple "same as cash" financing deal in which you can pay the full amount exactly 5 years from today. Alternatively, if you choose to pay cash today, the store will subtract 8% from the agreed-upon price. 

What is the implied interest rate on the "same as cash" financing deal? 

Answer rating: 100% (QA)

To determine the implied interest rate on the same as cash financing deal we can calculate the e... View the full answer