Answered

IDNLearn.com is committed to providing high-quality answers to your questions. Find the answers you need quickly and accurately with help from our knowledgeable and experienced experts.

A businessman wants to buy a truck. The dealer offers to sell the truck for either $120,000 now, or six yearly payments of $25,000.What is the interest rate being offered by the dealer in percentage (rounded to the closest integer number)

Sagot :

Answer: 6.77%

Explanation:

Based on the information given in the question, the following can be deduced:

Initial amount (PV) = $120000

Annual payment (PMT) = $25000

Number of payment period (NPER) = 6

Annual rate = Rate(nper, pmt, -pv)

= Rate(6, 25000, -120000)

= 6.77%

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for choosing IDNLearn.com for your queries. We’re committed to providing accurate answers, so visit us again soon.